RE:California to pay for house down paymentsOnce again the title "California to pay for house downpayments" is a somewhat deceptive title particularly with the fact this is currently something California lawmakers are proposing.
It's great they are considering providing a 17% down payment toward first time home buyers and the home buyer still requiring 3% of the downpayment.
But the one real sticking point with this proposal is the stipulation that if the homeowner sells or refinances they have to reimburse the monies.
This will draw in lots of people but we all know there will be lots who ultimately don't understand the repercussions of this having to give back 17% if your refinance or sell.
$300,000 home X 3% = $9,000
$300,000 home X 17% = $51,000 to would have to be paid back.
Again good program for the extremely disciplined but not good if your home doesn't significantly increase in value.