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.
