CA is Giving Away 10% Down Payments For FREE to Renters!!

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Los Angeles Real Estate Market is one of the most challenging real estate markets in the country. Home prices, apartment prices and housing costs are through the roof. They are moving in a direction to modify the complexity of the real estate market by allowing home buyers the option to get 10% forgivable home loan if they live in their home for five years. This could give a huge level of housing demand as one of the largest hurdles to purchase a rental property, condo or house in California is the massive six figure down payment required to close on the mortgage and secure the property. This hurdle will allow millions of potential renters to become property owners and this could increase housing prices even more. The big question is, is this the right strategy for the housing market? Are we building out a housing bubble or is this housing market sustainable. I wonder what the interest rates will do to home affordability coupled with forgivable mortgages. Will this allow the housing market to offset the lack of demand? Los Angeles and Orange County are very expensive real estate markets for both property owners, investors and renters.