Prop 37 home loan FAQ

It lets CalHFA sell up to $25 billion in revenue bonds to fund second mortgages for middle-income Californians buying newly built homes.

The California Middle-Class Homeownership and Family Home Construction Act of 2026. Its ballot title was "Creates Loan Program for Middle-Income Buyers of Qualified New Homes."

It's the program's name for the loan. It's a fixed-rate second mortgage on a qualified new home, for up to 17 percent of the price.

Backers want it to encourage construction, not just raise demand for existing homes. The Legislative Analyst lists whether it actually increases building as an unknown.

People disagree. The Hoover Institution review says that if new supply doesn't grow, the subsidy could raise prices of covered homes. Supporters argue it will spur building.

Supporters included Bob Hertzberg, the California Association of Realtors, the California Conference of Carpenters and United Nurses Associations of California. The League of Women Voters opposed it, and no argument against it was filed in the official voter guide.

Yes. It's a loan, and repayment is how the bonds get paid.

The text we reviewed doesn't say. A second mortgage is normally paid off at sale, but you should wait for CalHFA's terms.

Not yet known. The measure says nothing specific, and CalHFA will set the terms.

The measure's text doesn't describe any equity sharing. It describes interest and repayment terms set by CalHFA.

We can't give tax advice. Ask a tax professional once the loan terms are known.

The Legislative Analyst estimates no direct state or local costs, because homebuyers' payments repay the bond investors.

It's a bond repaid from specific payments rather than the state General Fund. Here, those payments come from borrowers.

CalMatters reports the measure says private lenders, not taxpayers, would absorb defaults, though some analysts doubt the state would stay out in a wave of defaults.

Lenders that contract with CalHFA. None has been announced as of this update.

Be cautious. We found no CalHFA guidance on rules or launch dates. Check any lender's license on NMLS Consumer Access and never pay a fee to get on a list.

Yes. The measure says borrowers must retain a licensed California real estate agent or broker.

CalHFA must set education requirements for borrowers who would benefit, including first-time buyers. The details aren't out yet.

No. We're an independent educational guide. We don't make loans, take applications or speak for CalHFA.

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