"Gov. Gavin Newsom will propose a new $100-million fund to help wildfire victims afford loans to rebuild their homes under a revised budget plan set to be released Thursday. The Newsom administration estimates that thousands of victims of the Los Angeles wildfires cannot afford to rebuild, blaming a lack of access to affordable loans and a gap between insurance payouts and the cost to build again."
"The new fund would be designed to cover loan-loss guarantee to lenders, in which the state would commit to paying back a percentage of a loan amount if a borrower defaults, in order to lower the risk for lenders and encourage them to award construction loans to borrowers who might not otherwise qualify or only be eligible for loans at high interest rates. The money would also be available for homeowners to buy down their interest rates during the construction period, according to Newsom's office."
""We have been on the ground in L.A. since Day One of recovery from these fires, and we aren't turning our backs now," Newsom said in a statement. "This community deserves continued support to help them get back on their feet, and rebuild their homes and their lives.""
Gov. Gavin Newsom plans to propose a $100-million fund to help wildfire victims rebuild homes. The administration estimates thousands of Los Angeles wildfire victims cannot afford rebuilding due to limited access to affordable loans and a gap between insurance payouts and rebuilding costs. The fund would cover loan-loss guarantees for lenders, reducing lender risk and encouraging construction lending to borrowers who might otherwise be ineligible or face high interest rates. The funds would also allow homeowners to buy down interest rates during the construction period. The proposal follows the January 2025 Eaton and Palisades fires, which killed 31 people and destroyed more than 16,000 structures. A survey found homeowners estimate they need over $600,000 above insurance payouts to rebuild.
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