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California has a housing affordability problem. Homes are expensive. Down payments are enormous. Young families are struggling to buy their first house.

So, what's California's latest idea?

Get into the mortgage business with $25 billion in borrowing authority. Apparently, when housing becomes too expensive, the answer is to help people borrow even more money.

BILLIONS SPENT BY KEY FEDERAL AGENCY HASN'T MADE AMERICAN DREAM OF HOMEOWNERSHIP ANY EASIER: REPORT

Welcome to Proposition 37.

The couple admiring the view from the living room of their new house. (iStock)

The $25 billion mortgage experiment

On November's ballot, California voters will consider a proposal allowing the California Housing Finance Agency to issue up to $25 billion in revenue bonds to finance down-payment assistance .

Here's how it works. Buyers put down as little as 3%. The state-backed program provides a second mortgage covering up to another 17%.…