The bill aims to expand the eligibility for the California Dream For All loan program that’s available to first-time home buyers. The program offers loans without interest or monthly payments. It’s been popular, with more than 2,300 applicants in 11 days last year.
Last year the program was first come, first served, but this year it will operate via a lottery system. It also has a new rule which requires applicants to be first-generation home buyers.
The original program was established in an effort to help low- and middle-income individuals buy a home, but the program doesn’t address eligibility based on immigration status, Arambula said.
“It’s that ambiguity for undocumented individuals, despite the fact that they’ve qualified under existing criteria, such as having a qualified mortgage,” he said in an interview. “Underscores the pressing need for us to introduce legislation.”
The California Dream for All Shared Appreciation Loans program that launched last March by the California Housing Finance Agency offered qualified first-time home buyers with a loan worth up to 20% of the purchase price of a house or condominium. The loans don’t accrue interest or require monthly payments.
Instead, when the mortgage is refinanced or the house is sold again, the borrower pays back the original amount of the loan plus 20% of the increase in the home’s value.
The original program was established in an effort to help low- and middle-income individuals buy a home, but the program doesn’t address eligibility based on immigration status, Arambula said.
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