SACRAMENTO California Gov. Gray Davis has signed into law a bill that provides $108 million of state funding for down payment assistance for buyers of newly built single-family homes, according to a published report.
The program is expected to help up to 20,000 homebuyers a year over the next two years, the report by Inman News said.
The law expands the School Facility Fee Down Payment Assistance Program, which is designed to help first-time homebuyers acquire newly built homes in economically distressed areas.
Borrowers can receive a forgivable grant, which can be combined with other down payment assistance programs, and they can choose a first loan from any lender.
The size of the grant is determined by the amount the developer pays in school facility fees, which in many cases is several thousand dollars.