California is in the las bit of a legislative effort....where they will help launch a migrant effort to buy homes in the state....with ZERO down-payment and ZERO interest. You can figure by early 2025....this will start up.
Now, if you were a mature adult....you'd ask, what is the typical cost of a house in California at present. In non-urbanized California....it's in the $400k for a start-up home. It's close to 500k to 600k in urbanized California. And to be honest, to get anyone of a decent place....you need to figure $750k.
Naturally, you'd then add the numbers....nothing down....zero percent on interest....$400k house. Your payment, with property insurance and property tax....is $1,440 per month for 30 years.
Salary required to make a $1,440 payment on the house.....per month? Well....if you figure legit health insurance, current state income taxes, cost of living into this? A minimum of combined income of $90,000. If your language skills are near zero, and your job background for the past 20 years has been a fruit stand in Guatemala, or a taco stand in Peru? You probably won't get past $40,000 in salary...meaning zero health insurance and marginally surviving three years before your mortgage failure occurs.
The question then becomes....what bank would be stupid enough to get into this state plan? And what would this bank do with 1,000 potential failed mortgage situations and the homes involved?
I'm not a financial wiz, but I don't see how a bank would walk into a mess like this and agree to a loan. It'd be different if you offered 40-percent of the $400,000 and had a real job pulling in $90,000 in combined salary per year. Maybe if this were Alabama where you still might occasionally find a $100,000 'cabin/shack' or 1950s-built home. But California?
So I give it three years to fail, and at least 1,000 homes are confiscated yearly under this scheme. Total failure within five years? Probably.