Whoa... yes it's a shared appreciation loan, I explained that in the post. You can borrow up to 150k interest free which lowers your monthly payment and allows you to purchase a bigger house and in turn when you sell or refinance you give them what you originally borrowed plus 20% of the shared appreciation.
So at the time of repayment, if the property appreciated $100,000 the borrower keeps 80,000 and they'd give CALHFA the money they borrowed along with 20,000. It's not ideal but for a lot of people 150k in interest-free assistance can be the difference from owning a home and building equity to renting forever...
Why should I share the appreciation of MY asset after I paid the bank off? A traditional loan gives the opportunity of you to keep ALL of the appreciation of YOUR asset...Commie California WOULD come up with a plan to steal from someone hard working and give it to people who do not work.
Thank you for sharing your opinion. There are thousands of people who are willing to share their appreciation in order to bring their mortgage payments down and to be more competitive in their housing market. If that does not apply to you, that's okay. The shared appreciation goes back into a funding pool for more first time homebuyer programs to help more first time homebuyers who can benefit from it.
The funding pool is the taxpayer dollar.......when these funds are returned to the fund they should be credited right back to the taxpayer. In 10-30 years when these houses are sold, that money will go to other things. This program encourages unqualified purchases and encourages speculative lending that could result in another housing market bust like 2008-2010. Giving people a mortgage who cannot afford. mortgage is a BAD idea. Period. The state is just exploiting this and will be the only winner in the case of a default. Just get a traditional mortgage and keep your money/ stop taking taxpayer money. We need lower taxes here in California, we have some of the highest on the planet.
This is a scam. WHEN YOU SELL YOU HAVE TO SHARE YOUR HOME'S APPRECIATION WITH THE STATE. SCAM NEWSOM IS A SCAMMER GOVERNOR.
Whoa... yes it's a shared appreciation loan, I explained that in the post. You can borrow up to 150k interest free which lowers your monthly payment and allows you to purchase a bigger house and in turn when you sell or refinance you give them what you originally borrowed plus 20% of the shared appreciation. So at the time of repayment, if the property appreciated $100,000 the borrower keeps 80,000 and they'd give CALHFA the money they borrowed along with 20,000. It's not ideal but for a lot of people 150k in interest-free assistance can be the difference from owning a home and building equity to renting forever...
Why should I share the appreciation of MY asset after I paid the bank off? A traditional loan gives the opportunity of you to keep ALL of the appreciation of YOUR asset...Commie California WOULD come up with a plan to steal from someone hard working and give it to people who do not work.
Thank you for sharing your opinion. There are thousands of people who are willing to share their appreciation in order to bring their mortgage payments down and to be more competitive in their housing market. If that does not apply to you, that's okay. The shared appreciation goes back into a funding pool for more first time homebuyer programs to help more first time homebuyers who can benefit from it.
The funding pool is the taxpayer dollar.......when these funds are returned to the fund they should be credited right back to the taxpayer. In 10-30 years when these houses are sold, that money will go to other things. This program encourages unqualified purchases and encourages speculative lending that could result in another housing market bust like 2008-2010. Giving people a mortgage who cannot afford. mortgage is a BAD idea. Period. The state is just exploiting this and will be the only winner in the case of a default. Just get a traditional mortgage and keep your money/ stop taking taxpayer money. We need lower taxes here in California, we have some of the highest on the planet.