• Authorizes up to $25 billion in bonds to offer eligible buyers fixed-rate mortgages for up to 17% of the purchase price of a “qualified new home” (new construction or first sale of converted nonresidential property, priced below about $1 million–$1.5 million, depending on county, adjusted annually).
• Borrowers must be California residents for one year, occupy the home, earn less than twice the area’s median income, and pay at least 3% down.
• Requires that bonds be repaid by homeowners’ mortgage payments, not the State.

SUMMARY OF LEGISLATIVE ANALYST'S ESTIMATE OF NET STATE AND LOCAL GOVERNMENT FISCAL IMPACT:

• No direct state or local costs.