09/05/2026
Proposition 37: 17% Second Mortgage
Proposition 37 is shaping up to be a significant development for California homebuyers. If passed, it would introduce a state-backed second mortgage—up to 17% of the purchase price—for qualified buyers of certain newly built homes, as long as they can contribute at least 3% upfront. When combined with a primary mortgage, this structure could help buyers reach that crucial 20% mark, reducing one of the biggest barriers to homeownership: the down payment. The state plans to issue up to $25 billion in revenue bonds, with loan repayments from participating homeowners covering both investors and program costs. For many California families, especially Latino households who often face steeper housing affordability challenges, this could make a real difference by easing the upfront cash burden—even when monthly payments are within reach. On November 3, 2026, voters will have their say on whether this innovative approach deserves a broader rollout. As always, my goal is to keep you informed and help you navigate the evolving landscape—because every step should be about your needs and understanding what’s possible.
