California Just Approved a New Mortgage Policy That Looks Just Like What Led to the Financial Crisis of 2008
Does everyone remember the 2008 financial crisis that hit right before the presidential election that year? The post California Just Approved a New Mortgage Policy That Looks Just Like What Led to the Financial Crisis of 2008 appeared first on The Gateway Pundit.
TL;DR
- California voters passed Proposition 37, creating a loan program for down payments on newly built homes.
- Buyers can now put down 3% instead of 20%, with the state lending the other 17% as a second mortgage.
- The program is funded by up to $25 billion in bonds.
- Supporters believe it will make homeownership more affordable by eliminating mortgage insurance and lowering payments.
- Critics suggest this policy resembles those that led to the 2008 financial crisis.
- Eligibility for the program reportedly requires only proof of residency in California for one year, not US citizenship or legal status.