Proposition 37 – Home Buyers Loan Assistance
IJ Action Recommendation: VOTE YES
Summary
Prop 37 would allow the California Housing Finance Agency to borrow up to $25 billion to help home buyers with down payments for newly-constructed homes and condos. These loans could provide up to 17% of the home purchase price for the down payment, meaning home buyers would be responsible for 3% for a typical loan for the down payment. The loan for the up to 17% of the down payment would be treated as a second mortgage that homebuyers would pay back in monthly payments. Buyers can earn up to twice the area’s median income to be eligible and must purchase a newly constructed home. They would repay their private lender as with any other typical mortgage.
Supporters Say
Supporters say that home ownership has been off the table for many middle-income families due in large part to the struggle to save enough to cover the down payment, and Prop 37 will help buyers get into newly constructed homes. Supporters include the CA Democratic Party, the CA Association of Realtors, and the CA Conference of Carpenters.
Opponents Say
Opponents say that the state government should not be involved in the mortgage market, and argue that this measure does not do anything to address the underlying causes that make housing so expensive. They also question how much this will actually save the average home buyer, since the loan for the down payment must still be repaid as a second mortgage. Prop 37 is opposed by the CA Republican Party and Reform CA.
IJ Action Recommendation
VOTE YES. Prop 37 may not be a perfect solution, but it will certainly help some working families own a home sooner. Since home ownership is one of the most secure ways to build and pass down wealth, anything that makes this dream a little easier to achieve is something we can certainly support.
Yes Website
No Website
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