California Bill AB 1840 Could Expand Zero Down Home Loans to Undocumented Immigrants, Raising Concerns Over Costs and Housing Prices
According to Just The News, California is advancing a new bill that could let undocumented immigrants use the state’s zero down, no payment home “loan” program. This program gives up to 20% of a home’s purchase price without any initial payment. The AB 1840 bill aims to include undocumented people in this program, which could help them buy homes and gain financial stability.
The bill’s expansion might lead to big costs for the state, possibly millions of dollars yearly. The current program has a lottery system where 18,000 people apply for a share of $255 million. Only 1,700 lucky winners get up to $150,000 each for down payments and closing costs. Some worry that more applicants could strain the program and push up housing prices.
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California Bill Expands Homeownership Program for Undocumented Immigrants – $255 Million in Potential Annual Costs (PHOTO: Fox News)
AB 1840: Potential Repayment Issues for California’s Zero Down Home Loan Program if Home is Kept Long-Term
If the bill passes, the loan will be paid back when the home is refinanced, sold, or transferred. The borrower would return the original loan amount plus 20% of any increase in the home’s value. There are no clear rules on what happens if the home is kept long-term, which could create issues with repayment and financial planning for the state.
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