California 'Dream for All' program boosts home ownership
HTML-код
- Опубликовано: 1 окт 2024
- As the ability to afford a house slips farther out of reach for many working people, California is stepping in to help struggling home buyers. John Ramos reports. (7-27-22)
They should also help to prevent large real-estate firms from buying all the homes and selling them to the most wealthy.
It doesn’t matter who the seller is because a house will only sell for a price that buyers are willing to pay.
They should also make sure these low income "owners" can afford to properly maintain a home and not let it turn into a pile of trash in 5 years. They should also do extensive criminal background checks on every potential resident and their families...
But that is not capitalism that is socialism or even comunism we cant have that,
@@RM360CR people who have never experienced communism have no clue what it looks like.
and where is this fund coming from???
more TAXES???
The Treasury.
Gotta keep that pyramid scheme going somehow.
Lol, this is a terrible idea no matter how you look at it.
Someone: wish I could buy a house . . .
CA: I heard you like loans, so Im offering you a loan in a loan!
"Especially people of color" I'm white and I was living in my car in San Jose while working 60+ hours a week.
but your ancestors owned slaves lmfao
If you cannot afford the down payment you cannot afford a house.
Great program but mortgage on a 800k home even with the 20% down is still what? Like $5000 a month? You have to have a household income of 150k to afford it.
Nope. More than $150k fir a $5k mortgage.
that's exactly where I'm stuck. I can do the 20% down but can't come up with monthly payment.
that's why you put your family in a master bedroom and rent out the rest of your rooms to strangers from Craigslist. At least, that's what I've been seeing in the SFBA.
@@temich1985 and yeah that stranger is making Atleast $150k a year
@@mytravls so one day he can save up and buy his own home while renting out his rooms to new strangers.
Why the hell should our tax dollars be used to help buy others a home?
Plus a lot of these program convoluted and counter-productive. Dreamed up by Activists where it is really about shuffling around money between different parties.
"Affordable Housing" in my city is really subsidized by making people paying full price give their money to a fund down the price of some of the units in the complex.
Why not everyone 🤦
@@itweety21 In theory, that would be the correct way to do that. But I don't think it would be popular to "Tax everybody to help a few buy houses".
Instead, the Affordable Housing example, I gave, they just confuse people. The gullible and ignorant think we have a magic way of deploying less expensive houses. Project/Gov. officials don't explain where the money comes from. They are congratulate and slap themselves on the back on the project which just shift money out of one pocket to another, and just count on people being ignorant and emotional
Your tax dollars are going to illegal aliens, foreign countries to fight their losing battles... do you think this is any different?
EXACTLY!!! I just moved out of CA and tax payers shouldn't help other purchase a house. CA wasteful spending again!!! SMH!!
Another lie! $100K will let you live in shipping containers on Oakland dock
"Stepping in to help?". . . with more loans. . . GENIUS, guys . . .
Fantastic. This is only drive home prices even higher.
Why build more houses when you can just drive demand for the small amount there are up?
Don't fix it, just make it worse.
They found another way to make money off of us.
Have you been to California? There are a MASSIVE amount of new homes being built
@@skellington2000 well all I see is homes being built. Also I wonder if nobody can afford these homes then why are they building so many. Around my house there are still empty lots and sometimes they bring people I believe from China on real estate "tours" showing them properties around the area so they can buy. Unfortunately sometimes the homes around here just sit empty because they buy them and don't live in them as well.
How about lowering the fees to build new houses in California. There are so many regulations that add to the cost of a new home like the solar panel requirement and fire sprinkler requirement. Add those unnecessary costs to the already outrageous building permit fees. In Riverside county, the single home building permit fees are estimated to be between 20k to 40k, just for the stupid fees.
This. Yes.
What about all the already built houses still outrageously priced…
It will increase demand and cause a rise in prices.
Exactly. Helping first time buyers in the short term while continuing the increased costs of California Real estate to the detriment of future first time buyers. While the state reaps the benefits of this 'investment'. Is limited infrastructure preventing us from building enough new housing to keep up with demand? Maybe infrastructure is the better long term investment.
I'm 12 to 18 months it will start.. THis is a joke, right ??
Exactly. Prices will just go up so now all the down payment did as increase the purchase price. Trash liberal Democ Rats don’t help.
It’s amazing how stupid people are. Same for laziness and uncompromising.
Three grown adult sons and their mom and dad bought my modest home back in 2002. Nice Latino family. Individually they could not purchase a home. With all 5 living together they saved plenty on rent.
Pretty sure all the sons got married saved enough for a down payment for their own respective homes. They sold the home they bought somewhere around 2005 I heard.
They profited like 200k and probably used that plus whatever they saved for all the new houses they bought.
If you can't afford the down payment you can't afford to live here
@@friendforlife3321 it's a fact. Have more money work harder otherwise tough shit
@@friendforlife3321 Yeah. Imagine a down payment being a requirement. Next, you'll be expected to be able to afford maintenance, utilities, insurance, property tax, etc
@@friendforlife3321 Callous maybe, but not ignorant. Maybe NCR Transport remembers the real estate correction of 2008-2012 caused by programs allowing loans with scant requirements. The greater issue as I see it is this adds more demand to an existing supply which will just drive prices higher. What we need is sufficient infrastructure statewide to allow many more homes to be built to meet demand.
*The only way you can Help Me buy a Home??*
*To make Homes that are $$ 900,000...to $$ 150,000,,, like they were in the 1970s.*
After reading all the negative comments about this program, I’ve come to realize how little the average American understands economics. If you don’t like the program, don’t use it. A lot would benefit, some renters here in California would be paying 3 or 4K for the next 30 years but instead pay that as a mortgage towards home ownership. That would be wonderful. In the long term home value appreciates.
Lol I wouldn’t recommend anyone doing 30year to start with anyway. Sounds like you are the average American this program is targeting
More of spend what you can't afford. I hope the government won't need to bail out these mortgages should the economy head downward.
So where did the money for this come from? California is in debt it doesnt have these funds? Who is decideing to creat more debt rather than pay off the old?
So people will just change 20% more then what ot was before
Next you're gonna tell me that college tuitions started skyrocketing once their loans were guaranteed 🙃
When you make it easier for people to buy homes they can't afford, they are more likely to walk away when they can't pay the mortgage.
Plus if there are more applicants that can make the down payment because the government is subsidizing them it will just cause housing prices to go up. This legislation just seems like a dog chasing its tail.
@The Julian Interaction If they need help buying a home, then maybe they shouldn't buy one.
u just don't walk away..there r consequences...like if u don't pay mortgage bank will take over yr. house n still demand payment of the balance n if u can't pay... make u a bankrupt...n yr. fico score is kaput
Facts
Don't do it fake news media giving false information. This loan makes the state co-owners of the property which means you have to put their level of insurance on the property also they can foreclose easier on a default.
They need to make sure that these loans are going to individuals and families that are lifelong or very longterm California residents and not investors, slicksters, tricksters and mainly foreigners trying to get in on a deal. The latter is the reason why the prices shot up in many areas in California.
Nah. they need to squash this Bill before innocent residents lose all there California Banks monies to funds these loans.
it in the best interest of the state to keep home price high so the state can collect higher property taxes😂😂😂😂😂
The Treasury is forcing them out of that position actually.
I used a VA loan a couple of months ago - amounted to $155K(ish) - free money - all you have to do is join the military 😝
How many years was you in the military?
My question is if the house is undervalued when it's sold, who will take the lost? The bank or the program ( tax payers)?
It sounds like 17% belongs to the state no matter what value it sells at, they are a partner in the transaction. Therefore if there are losses then yes it is the program / tax payers money affected.
@@shaheed4509 when the housing bubble in 2007-2009, the bank which provide 80% of mortgage would recoup most or all their money before the 2nd bank. So if this program is going forward, it's so dangerous to housing market. Just like last time, people tend to walk away from their house when the value below the market. There is nothing to make them to work hard to keep the house.
You the homebuyers will have to repay the state of their minimum investment if the property is sold at a loss. Also if foreclosed & you file chapter 13 your still responsible to repay the state unlike all bills going away.
@@peragtori My understanding is that this bill is still in progress. If you have details of such scenario specifics, please share links. Thanks in advance.
@@harlanjackson6112 Everything will be spelled out in the contract. Read it very carefully & I would go as far as having a lawyer look it over. Remember the state/government is not your friend nor are they going to help without a clause.
Still a “dream” alright. The price of homes in California are so inflated that most people still won’t be able to afford the monthly mortgage. So the “Dream for All” program is only for those who are making a minimum of 6 figures annually. I guess that means rents are going to stay high for most people.
BECAUSE they refuse to build more homes AND control their migration.
Exactly
Don’t buy anything
The state should not be loaning people money to buy houses.
Society shouldn't be oppressing people of color either.
@@warrentoles3127 People of color oppress themselves.
I have a better idea. bids on single family homes open to owner occupant bidders, investment corporations or people looking to turn a single family home into yet another rental should be prohibited from participating in this part of the market let him go buy big apartment buildings and stay out of our neighborhoods this down payment loan program is only going to raise the cost for home ownership for real people just think it will raise the price in property tax assessments through the roof. The homeowners definitely don't win in your proposal!
More brilliant dumbacrat ideas..... I mean they have worked wonders so far right ?? Lmao
They really are predicting appreciation forever. it does not work like that. Some parts of the US have barely kept up with inflation over the past 20 years. And we are at our peak prices. Unless your selling your house to buy a new one, who can afford it? IPO money isn't gonna last forever and high interest rates are going to have their effect on prices. And it looks like we are going into a recession. I don't see how the state is going to recoup. Especially in the short term.
You're right. The program is being deployed precisely at the wrong time. Created by Activists rather than by anybody with business or economics.
Agreed. Just as interest rates are rising, the real estate market correction is already upon us.
Homes worth $150,000 selling for $850,000
"pretty modest home in the bay area" more like a nonexistent home in the bay area 😂 seriously have not seen a house under 1.5M in the valley in a long time
Another disaster in the making. So helping prime that can’t afford to buy. Home buy one anyhow? Sounds good but same crap as 08’ when everyone was told they are entitled to own a home and forced bad loans on people that couldn’t afford them.
Let’s keep the California dream real for all Native Californians!!!!
You call it California I call it I can’t Lmfaoo 🤣🤣
Also dream for illegals
@@JustDontPls I love California so much and I could never imagine myself leaving but it is very expensive.
@@JustDontPls lol. U can’t afford cali. We living good over here
@@cameronb3834 it’s a joke I don’t think you got it and the other guy too but theirs a ad that plays on RUclips and I’ve seen it on tv as well about the tribes wanting taxes on betting so I was quoting the beginning part of that commercial
I did a similar program with the city of Fremont back in 2007. It’s called the shared equality program which loans you $40k and payback when you sell your home along with 10% of you equality you gained. I am not sure they still have that program, but 40k was a lot back then and helped me to get to my 20% down payment. There are plus and minuses. You must be a Fremont resident to join the program. You have to use a 30 years convention loan, no 5 yrs arm or anything like that. Can’t rent out. You have to live there and they check for water/pge bill annually. Only few banks qualifies with refin and needs to be on the approval list. Otherwise it was a good way to get in into your first home.
Who was stopping you from renting. Nobody. What if you broke the rule. Then what. Who will cry discrimination.
They all sound good in concept but open for a lot of abuse.
There’s no Dream in California only Nightmares
Lol
So if you sell the house, after paying tax and the loan interest, you would be better off without that loan. Just relax regulations and allow builders to build thousands of houses. Increase supply would decrease price. Very simple
Sounds racist
How?
It’s ALL racist
😂
Harvard and all the universities confirmed what America's been hiding 😂
BS scam
Just build more homes.
There have been programs like this in the past. Let's hope the economy doesn't slide further into recession, which would cause more financial burden on those that have decided to purchase something they already can't afford. The state is currently flush with extra cash and should be putting the money towards rectifying the homelessness and other issues facing the benefit of all Californians.
But that is exactly what is needed to bring down prices back to normality a reset I mean if you bought a home NOW or in the last 5 10 20 years at such prices will you honestly finish paying a 30 year loan with this inflation economy climate change russia china pandemic crime gun violence drugs if in fact things will continue to get worst for many reasons.
They should add 40 new building regulations like home has to have marble columns and tigers with lighting bolts
California: So are you still dreaming? 😏😏😏
If the house loses value they have to payback what they were given. If the house appreciates they have to pay back 20%. Nothing is ever FREE. I would rather save my money for a down payment so I can own the house out right! There also income limits...
Do current home owners get any help with anything…. NOT
It all about keeping that local property tax high folks.
exactly!! the state made & wants to maintain the housing shortage
@@jessicah3782 they throwing up apartments/housing like crazy. I saw all the plans
The state is probably getting funding from the Treasury which when you do this reduces taxes.
"If the home apricates", what can go wrong guyz
This plan sucks
Now they can put more people in houses they can’t afford. If someone does not have the down payment they should buy a cheaper house or get some more down stroke.
the state made this problem and now they will profit from it.
There aren't enough homes in California
Just another way for the state to work more tax dollars out of you.
Another tool to create another bubble.
Building codes are holding us back. Also peeing in water. (It's dry out: just pee in your garden and water in the nitrogen for no smell fertilizer)
Peeing on or around the vegetation keeps the deer away.
In 12 to 18 months???? Not NOW ???
Dream to a few, lie to the rest...
This is great for first time home buyers! Just stay within your budget and make sure you can really afford it.
I do not believe our housing problem can be solved by boosting home ownership but rather by increasing housing supply. We should do the hard things such as rezoning our city. Building a more affordable and livable city which makes the housing prices come down as well reduce the need for cars. A situation when people can afford a home as well move away from a high depreciating asset that destroy worth building needed for retirement.
From two years in the future: This Dream For All only made housing even more unaffordable.
It's probably cuz the Olympics is coming in 2028 lolol
Wealthy people should buy all the homes, their California banks will be using their money to fund these worthless loans!!
Who is offering 3.5%?!
Alternatively, you could make mortgages 200 year loans…then I could afford a home in the Bay Area
This is just as Desperate as Rate Buy Downs… P A T H E T I C… use my tax dollars on something better…
Summary: The state will buy 17% of the property with you & only share in its appreciation or depreciation
If the house value going down more than 20%, then 2007-2009 repeat. Tax payers' suffered.
How long is the waitlist to get enrolled in this program, 10, 15 years?
All I can say one word yikes !.
If you guys are if the bay area message me ! Im a Realtor here and can answer any questions you have about the home buying process . Theres other programs then this one especially for first time buyers
Imagine they now have a financial interest in home appreciation. Why build more or pass legislation that lowers housing costs when that actively hurts your investment. I used to be a democrat until I grew some brain cells
The state is going to guarntee loans for individuals who can't afford it.
Great idea!!! hahahaha
CEQA has gone overboard. That's why home prices are a lot higher than the rest of the country.
bad idea...plenty of other states with affordable housing
But I don't wan to buy a home here, I want to leave...
Make it free, problem solved
I bet it'll be for people who makes under 50k a year and they can't keep up on payment they lose the house. Then for people like us who makes roughly 75k of more are disqualified because they'll claim we make too much but the amount of tax we paid yearly is too high to to try and save for a down payment and still make ends meet. Its a lose lose, in my eyes .
more welfare for the rich in this dammed place.
Silly idea to only drive up the demand side which rarely has had any issues. Should've brought tax incentives and programs to boost construction/labor training/rezoning efforts. Nevertheless, it's easy to just throw money at something and use this as a political win of helping people but people already have lots of lending options.
Don’t do it!!! Dumbest program
What if the housing market crash for good, how that appreciation loan will work? Isn't that also going to inflate the home prices? Looks like a bail out to current home owners so as to be able to exit without taking a loss.
I would assume they would just take the lost. They have 500M put aside for it.
Government escheat funds more than enough to pay
Program to fund state officials
I’m excited to use this!
did u apply?
it's still a win-win situation for the government lending the loan. they're getting it back from home value appreciation? smart
State just making investments
did I miss how to sign up for it? or do we have to wait the 12 - 18 months? I searched all over the internet and can't find anything.
🍿 this will backfire.
You don’t pay the loan back, at least right not away!!!!! 🤔
With Newsom dictating an end to single-family dwellings, simple supply vice demand will push up costs.
If I still have to pay the state back after they double and triple tax us on everything else then it's not a good deal.
56 k views😂
It's a trap
Wow just wow
Ef that.
So basically we keep prices high so you need us to buy a home.
Is this for first time home buyers only program?
One quick question. What the heck happened to all of those homes from the COVID death victims ?
Investors swooped them all up
There’s no way any one can get a loan that would cost you $1k a month
Damn, this is smartest thing Cali has done.
You must be joking
@@ryanwalthuis1928 nah I’m not, I think it’s a great way to help poor ass people like me….
@@bakoguy5330 Only if you hurry. As word gets out many more will join the buyer pool, increasing demand. And from econ 101, when demand goes up without an increase in supply (edit: nothing in the program addresses supply), what happens to the price? Anyone?
Elizabeth Cook is the best
That’s not nearly enough money to help! Need like 1B to make a dent
That other 1Billion is in the business sector
You know what is a good idea? Give taxpayer money of 20% of a home's price in exchange for partial government ownership.
Sounds like the Chrysler and GM stock purchase bailout. It is worse because in order to be "self sustaining", the government is assuming CA real estate will appreciate forever. Does the government share in the loss?
Since when was a $1mil house supposed to be a starter home??? If you can't afford it, move to an area where you can. Most people buying a $1mil house are trading up using equity from the $500k house they bought. Total waste of money. If someone can't find that 20%, they are not suitable to own. When foreclosure looms, they will just leave. The state (valid taxpayers) will pay for this. Huge mistake. So, of course, California will move forward to make Sacramento look good. This is all political show.