I hope this isn’t TARP money they’re using! Oops I forgot. Money if fungible.

The LA Times blog reports that Los Angeles County is offering interest free second mortgages of up to $75,000 for first time homebuyers. The seconds are not only interest free but don’t have to be repaid until the house is sold, refinanced or is no longer owner-occupied.

Riverside County is contributing the 20% downpayment for first time homebuyers who purchase a home with a value of up to $350,000. The homes have to be foreclosed properties.

What a novel idea. One hundred percent financing. Why didn’t anyone think of this before?