California IN BRIEF : SACRAMENTO : Wilson OKs Home Loan Program

Gov. Pete Wilson signed legislation that would provide state-guaranteed mortgages for first-time home buyers with as little as 3% down. Voters in November will decide the fate of the mortgage guarantee program. The two-bill package would assist an estimated 55,000 families in buying homes. The legislation creates a state-sponsored mortgage insurance fund for buyers with less than 20% as a down payment. It also enables buyers to put together a down payment through gifts from family members and employers.