Proposition 37State law · Citizen initiative
Second mortgages for new homes
Explain it like I'm 5
Qualified buyers could get a second loan to help buy a qualifying newly built home. It is not free money, because the buyer must repay the second loan as well as the first one.
Yes vote
California could establish a second-mortgage program for qualified buyers of qualifying homes and issue up to $25 billion in revenue bonds.
No vote
This second-mortgage program and its bonds would not be created under the measure.
The question to ask yourself
Would this loan program expand homeownership more than it increases buyer debt and housing prices?
The case for
- Could help middle-income buyers who can afford monthly payments but lack a large down payment.
- Focusing on new homes could encourage additional construction.
- Revenue bonds are intended to be repaid through borrower mortgage payments.
Backed by: United Nurses Associations of California, California Conference of Carpenters, California State Treasurer Fiona Ma, Robert Hertzberg
The case against
- A second loan increases a buyer's total debt and monthly obligations.
- More purchasing power could raise prices if housing supply does not expand enough.
- Eligibility is limited, and the program may not help renters or existing-home buyers.
Opposed by: No organized opposition found
- Money
- The measure authorizes up to $25 billion in revenue bonds intended to be repaid by mortgage payments, with no direct state or local cost estimated.
- Don't be misled
- Calling the assistance free is misleading because it is a repayable second mortgage, not a grant.