Proposition 37 on the Nov. 3 ballot would create a down-payment loan program for qualifying San Mateo County homebuyers purchasing eligible new homes.

The measure would allow the California Housing Finance Agency to issue up to $25 billion in revenue bonds to fund loans covering as much as 17% of a home’s purchase price. Buyers would contribute at least 3% from their own funds, according to the Legislative Analyst’s Office.

Which homes and buyers qualify?

Eligible properties include newly built homes and homes converted from nonresidential buildings. The borrower must be the first purchaser and occupy the property as a primary residence, according to the measure’s text.

The purchase-price limit would be about $1.56 million in San Mateo County using 2026 limits, according to Houseberry’s analysis. The limit is tied to federal mortgage limits and could change annually.

Applicants must be California residents. Applicants’ income could not exceed twice the area median income, adjusted for family size. Meeting that limit would not guarantee financing.

What would buyers pay?

The assistance would be a second mortgage with monthly payments, in addition to the buyer’s primary mortgage. Interest rates have not been established.

Homebuyers’ repayments would be designed to cover the bonds and administrative expenses. The Legislative Analyst’s Office projects no direct state or local government costs.

Supporters say restricting assistance to new homes could encourage construction. The League of Women Voters of California opposes the measure, arguing that households with higher incomes or existing wealth could be more likely to receive loans, CalMatters reported.

The Legislative Analyst’s Office says the program’s impact would depend on investor interest, loan costs and whether it increases homebuilding and purchases.

How to vote

Election Day is Tuesday, Nov. 3. Ballots returned by mail must be postmarked by Nov. 3 and received by Nov. 10. Ballots placed in official drop boxes are due by 8 p.m. Nov. 3, according to the California secretary of state.