Prop 37 loan eligibility

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Buyer rules

These come from section 51515.01(a) of the measure.

• Residency. You must have been a California resident for at least one year before applying.
• Occupancy. You must agree to occupy the home as your primary residence within 60 days of closing. It can't be a rental or second home. CalHFA sets how long you must stay.
• Income. Your family income can't exceed 200 percent of area median income for your family size.
• Down payment. You must pay no less than 3 percent of the price yourself.

The text doesn't limit the loan to first-time buyers, and the official summary doesn't either. The ballot argument for the measure describes it as designed for "renters, first-time homebuyers, and working families," but CalHFA would need to add any such limit. It's allowed to add other eligibility rules.

How the income rule works

Area median income, or AMI, is the midpoint income for an area. The ceiling here is twice that, adjusted for family size, so it changes a lot by county.

In the state's 2026 income table, the four-person median is $97,100 in many rural counties and $205,500 in Santa Clara County. At 200 percent, that's about $194,200 and $411,000. Your county's figure is in the county limits table.

The 3 percent rule

This rule has more bite than it looks. The money must come from "a source other than a grant or borrowed money." So a loan from a relative wouldn't count, and neither would another assistance grant. The text doesn't say how it treats gift funds, so don't assume a family gift qualifies until CalHFA says so.

Three percent can still be a real hurdle. The Budget Center notes that it's $21,000 on a $700,000 home, and that California's median checking and savings balance was just over $18,000.

Home rules

• New construction, or a nonresidential building converted to housing
• You're the first purchaser
• A house, townhome, row house, condo, manufactured home or other one-household unit
• Priced at no more than 125 percent of the county's one-unit conforming loan limit

The home doesn't have to come from a builder in the program's "qualified builder option." All developers can build eligible homes, says the Legislative Analyst. More in the qualified new homes guide.

Qualifying isn't the same as affording

Passing the income test doesn't mean you can carry the payments. CalMatters reports that the Public Policy Institute of California estimates the income limit covers about 90 percent of renters, but fewer than 40 percent could afford the higher monthly payments on an entry-level home.

Lenders will look at your total monthly debts, including both loans, property taxes, insurance and any HOA dues. A HUD-approved housing counselor can go through your budget for free or at low cost.

Eligibility questions