California Voters Approve Prop 37 Loans

California voters approved a program to help qualified buyers cover part of the down payment on newly built homes through a repayable loan.
The program will allow California to issue up to $25B in bonds, funding loans of up to ~17% of a home's price; purchase-price limits apply.
Buyers must contribute at least ~3% toward the down payment; a primary mortgage covers remaining costs, and both loans must be repaid.
A mortgage broker said the additional loan could help some buyers avoid private mortgage insurance, potentially eliminating one component of their monthly housing costs.
Eligible buyers must have lived in California for at least 1 yr, earn at most twice the area's median income, and occupy the home.