2026 California Proposition 37 Explained: Could a 3% Down Payment Help More Families Buy a Home?

Proposition 37 proposes a state-backed second mortgage program offering up to 17% of a qualifying new home's price, requiring buyers to contribute at least 3%. Targeting middle-income Californians, it aims to reduce down-payment barriers but is a loan, not free money. The program is limited to new homes and first-time buyers, with income caps around 200% of area median income. It may help some families, including Latinos, but doesn't guarantee affordability or increased home supply.