A potential new policy – Proposition 37 – could theoretically allow California to save up to 17% on their home downpayment. With the median listing price of a home in California currently at approximately $778,000, this would require a downpayment of $156,000 at 20%, a number clearly out of the range of many California buyers. A 3% downpayment would be $23,000, certainly much more manageable.
While Prop 37 wouldn’t require the applicant to be a first-time buyer, it would stipulate that they be the first owner of the property, which is to stimulate much-needed housing development. An added benefit is that this proposition would allow buyers to avoid mortgage insurance, which is normally required for those putting down less than 20%.
Many analysts see this bill as benefiting California’s inland areas where land is less expensive and housing restrictions are less stringent.
Proposition 37 should be n the ballot for California voters later this year.