California voters will soon weigh in on Proposition 37, a proposal that could impact how some buyers approach new construction purchases. If passed, this measure would allow eligible buyers of certain newly built homes to access a state-backed second mortgage covering up to 17% of the purchase price, provided they bring at least 3% down themselves. Combined, this could help buyers reach a 20% down payment—often the magic number for favorable loan terms—while the primary mortgage would cover the remainder. Up to $25 billion in revenue bonds could be issued to fund the program, with homeowner payments repaying investors and program costs.
For many California families, especially Latino households who face steeper housing-cost pressures, the challenge isn’t always the monthly payment, but accumulating enough for a down payment. This is a barrier I see often in my work across coastal Orange County. As both a real estate and mortgage broker, I focus on helping clients navigate programs like these to find workable solutions that fit their goals and financial reality. We’ll see on November 3, 2026, whether Californians choose to move forward with this approach to making new homes more accessible.
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