California is one step closer to letting undocumented immigrants get state-funded home down-payment loans, which critics call a costly new burden on taxpayers in an already stretched state.

• The state Senate passed a bill making immigration status no longer a reason to be denied California's first-time buyer loan program.
• The program gives zero-interest loans covering up to 20% of a home's price, worth up to $150,000 per buyer.
• The bill now returns to the Assembly, where Democrats hold a supermajority and it is expected to pass.
• Demand is already intense: this year's funding sold out in hours, with 18,000 applicants competing for 2,000 loans.
• Critics warn the state, as a partner in each loan, could end up owning homes if buyers default near the top of an overheated housing market.

Outlook: The bill is likely to become law soon, adding more taxpayer-backed buyers to a housing market many believe is near its peak.