Posted on 06/02/2021 5:15:12 PM PDT by rey
California could get in the business of helping first-time home buyers make down payments under a new proposal that aims to lower barriers to ownership in an era of sky-high housing costs.
A coalition of seven Democratic senators formally announced the “California Dream for All” program last week as part of a larger budget proposal they want Gov. Gavin Newsom to consider.
The state would serve as a “silent partner” to first-time owners, in exchange for up to 45% ownership of a house. By their calculation, that means someone eyeing a $400,000 home could buy it for “a more affordable price” of $220,000, with the state picking up the other $180,000.
(Excerpt) Read more at google.com ...
California hasn’t any money unless first taking it from us. Why would anyone want to be in partnership with the state?
I am learning how the various Medicare systems work, how when you exceed limits they attach to your house. They don’t kick people out but take the proceeds once it sells.
I know of someone who had substantial savings and ended up in a care facility under medi-cal. They took his entire savings and left his wife with nothing.
It won’t reduce the price of homes. If half the cost is covered by someone else, you can bid up the cost 50%. Stupidest thing ever.
If you can only afford half what makes them think that the buyer can pay fully on the taxes and insurances? Is only half financed? How to tax write offs and liabilities work if the state owns half? What if the house is lost in a lawsuit or seized for other reasons? Are deficiency judgements solely against the owner or the state as well?
I don’t believe they really think before they act nor have any of them taken an economics class.
Homebuilders must have a powerful lobbyist.
State trying to use a house as a ball-a-chain to keep people prisoner in California?
This will morph into taxpayers paying for Black homes only.
California Democrats think money grows on trees
Bizarre anyone would even think that should be the role of government. Government has no role in the homebuying business.
This is how we got the subprime loan crisis.
A bank that refuses to grant a loan to an unqualified “person of color” is racist.
A bank that inadvisably grants a loan to an unqualified “person of color” is a “predatory lender” when the “person of color” is unable or unwilling to pay it back.
See how that works?
I believe that is under Medicaid.
Let me guess. Whites need not apply and illegal aliens are front of the line.
So taxpayers get to buy other people’s houses? Are you kidding?
When the hell are people going to stand up to this crap? Never I guess.
Government has no role in the education business either.
I sold a house to a young couple one time. They didn’t qualify at first, but someone (the mortgage company?) told them about a first time buyer “grant” program. Someone would give them $5000 for a down payment. Great. They took it and it worked out. However, I found out through my real estate agent the money was figured back into the loan. That $5000 would be paid back over 30 years. It was the most ridiculous thing I ever heard of.
Already know which government scheme is right for you?
The mortgage guarantee scheme
Help to Buy: Equity Loan
Shared Ownership
Right to Buy
Shared Ownership is a part rent, part buy scheme that will enable you to buy a share of between 10-75% of a new build home and then pay rent on the rest.
Help to Buy: Equity Loans help first-time buyers in England onto the property ladder with the government lending them up to 20% (up to 40% in London) of the purchase price of a new build home.
313,043 households have now bought a home with the support of the Help to Buy: Equity Loan Scheme since its launch in 2013.
To apply, you must be:
aged 18 or older
a first-time buyer
You cannot:
own a home or land anywhere in the world now or in the past
have had any form of sharia mortgage finance
own a home bought with other people or inherited
be married or in a co-habiting relationship, either now or on legal completion with anyone who owns or has owned a home or land anywhere in the world
buy a second home
If you’re married or in a co-habiting relationship, you’ll have to make a joint application with your spouse or civil partner and both live in the home having it as your only residence.
There are price limits on homes you can buy with an equity loan. The limit is different for each region in England.
Region Full property price limit
East £407,400
East Midlands £261,900
London £600,000
North East £186,100
North West £224,400
South East £437,000
South West £349,000
West Midlands £255,600
Yorkshire and The Humber £228,100
https://www.ownyourhome.gov.uk/scheme/help-to-buy-2021-2023/
I wonder, if der Staat is a 45% owner will it pony up 45% of all maintenance, repairs and taxes?
I wonder also, if someone were to take up der Staat on such an offer and then decided to buy out der Staat years down the road would it be for the original 45% and a reasonable interest or would it more likely be for 45% of the much higher market value at the time? The latter would of course guarantee that very few could ever become sole owners of the home, if they could in fact continue to make the mortgage payments.
Help to Buy is a government scheme to help first-time buyers get a property with just a 5% deposit. You can borrow 20% of the purchase price (40% in London), interest free for five years. This scheme opens to new applications from 16 December 2020 and will run until 31 March 2023.
https://www.moneyadviceservice.org.uk/en/articles/help-to-buy-scheme-everything-you-need-to-know
They do that in Russia and the government owns it all
“Bizarre anyone would even think that should be the role of government. Government has no role in the homebuying business.”
All part of the plan that the gov’t should run people’s lives.
“Imputed rent is the rental value that an owner would get from renting the home they occupy at market rates. A few countries including Iceland, Luxembourg, the Netherlands, Slovenia, and Switzerland do tax imputed rent”
The Brits used to tax imputed rent too.
https://medianism.org/2017/10/28/imputed-rent/
There are lots of reasons why Joe & Company want to take away a core part of our Bill of Rights.
It is only a matter of time before an earthquake shakes up the California housing market.
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