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Prop 37
Prop 37
About:
California’s Housing Finance Agency would be able (but not required) to borrow up to $25 billion to help would-be homebuyers purchase newly constructed houses and condos. These loans could provide up to 17% of a home’s purchase price, leaving buyers with a cash down payment of 3% if paired with a typical mortgage — $24,000 for an $800,000 home.
Homebuyers would repay the loan in monthly installments to private lenders. Anyone earning up to twice the area’s median income would be eligible. Private lenders, not taxpayers, would be on the hook if homebuyers default. It was placed on the ballot by a coalition of real estate interests and labor unions. This is more catered to first time homebuyers compared to low income residents.
Argument for
Pro: House hunters can expect to pay a down payment equal to 20% of a home's value. In California, where $700,000 for a fixer-upper is considered a steal in much of the state, that’s not feasible for most people. This loan program will put the dream of homeownership within reach of the middle class without costing taxpayers a dime.
Argument against
Con: Opponents argue that the state government should not be involved in the mortgage lending market and note that the measure won’t do much to address the underlying reasons that housing in California is so expensive. Others note that while it would help more people buy homes, it would only do so by allowing them to go into even deeper debt. To clarify, this doesn’t mean that the mortgage would afford just attainable!!!
Supporters and opposers:
Supporters:
Xavier Becerra
California Democratic Party
California Association of Realtors
California Conference of Carpenters
SEIU
Opposers:
Reform California
League of Women Voters
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