Illegal immigrants to receive interest-free home mortgage loans under new California legislation.
Democratic Assemblymember Joaquin Arambula from Fresno has recently proposed Assembly Bill 1840, aiming to expand a first-time homebuyer loan program to illegal immigrants.
If the bill is enacted, illegal immigrants will qualify for a new program providing a loan equivalent to 20% of the residential property’s purchase price.
There are no monthly payments, and no interest accumulates on the loan. Instead, repayment occurs when the borrower refinances or sells the property. The borrower must repay the initial loan along with a 20% increase in the property’s value.
“It’s that ambiguity for undocumented individuals, despite the fact that they’ve qualified under existing criteria, such as having a qualified mortgage,” California Democrat Joaquin Arambula said in an interview. “Underscores the pressing need for us to introduce legislation.”
As reported by the Los Angeles Times:
Assemblymember Joaquin Arambula (D-Fresno) introduced Assembly Bill 1840 last month to expand the eligibility requirement for a state loan program to clarify that loans for first-time buyers are available to undocumented immigrants.
The California Dream for All Shared Appreciation Loans program that launched last March by the California Housing Finance Agency offered