Proposition 37: 17% Second Mortgage

Proposition 37 introduces a state-backed second mortgage for qualifying buyers of select newly built homes in California, aiming to make homeownership more accessible. Under this proposal, buyers would contribute at least 3% upfront, with state assistance covering up to 17% of the purchase price. Together, this allows buyers to reach the critical 20% down payment mark, while a primary mortgage covers the remaining balance. The initiative would permit the state to issue up to $25 billion in revenue bonds, with loan payments from participating homeowners designated to repay investors and sustain the program.

This measure is especially significant for families—including many Latino households—who can manage monthly mortgage payments but find saving for a substantial down payment challenging. As someone who has navigated California’s real estate landscape for nearly two decades, I have seen firsthand how down payment barriers can stand in the way of long-term ownership. On November 3, 2026, voters will decide whether this innovative approach deserves a statewide pilot. I’ll be following the outcome closely, as programs like this could reshape the path to homeownership for many in our communities.