California could soon help first-time home buyers with their down payments and mortgage costs under a proposed $1-billion program to make homeownership more financially feasible for low- and middle-income residents.
Senate President Pro Tem Toni Atkins (D-San Diego) first introduced the idea last year of the state stepping in to help more Californians purchase their first homes amid a competitive housing market and rising out-of-pocket costs. On Wednesday, she unveiled more details of the program, a state budget proposal to lend prospective buyers 17% of a home's purchase price as a way to lower their mortgage costs and reduce their down payments.
Once a homeowner sells, transfers or refinances their house, according to the program's outline, the owner would pay back to the revolving fund an amount equal to 17% of the home's current value — even if the amount is larger than the initial loan.
