The author argues that Proposition 37, a California ballot measure offering down payment assistance of up to 17% of the purchase price for new homes, may benefit home builders more than buyers. Eligible households earn less than 200% of area median income, and the author cites a family of four earning up to $166,800 in Madera County or $375,800 in Santa Clara County as falling within the range. Assistance would be repaid through a fixed-rate second mortgage, and its interest rate could exceed the already high first-mortgage rates, which hover around 7%. The author warns that the financing terms are unclear and that the 'qualified builder option' could boost demand for new homes without making them meaningfully more affordable.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Opinion : Prop . 37 could be a bonanza for home builders . But what about home buyers ? TBD .
Read the original on eastbaytimes.com ↗
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