09/08/2026
Proposition 37: 17% Second Mortgage
There’s a new proposal on the horizon—Proposition 37—that could make a significant impact for California homebuyers, especially those struggling to overcome the down payment hurdle. If approved, this measure would offer a state-backed second mortgage covering up to 17% of the purchase price for qualifying buyers of certain newly built homes. Buyers would still need to contribute at least 3% upfront, and together with the state’s assistance, this could get you to that crucial 20% mark, with a primary mortgage handling the rest. The state plans to fund this program by issuing up to $25 billion in revenue bonds, with homeowner loan payments intended to repay investors and cover costs. This is particularly relevant for many California families—including Latino households—who can manage monthly payments but find it tough to save enough cash to get started. On November 3, 2026, voters will decide whether this innovative, loan-based approach deserves a statewide pilot. After 35 years helping buyers and sellers throughout Orange County, I’ve seen firsthand how the upfront costs can be the biggest obstacle to homeownership. I’ll be keeping a close eye on this measure and how it could affect our community.
