California Prop 37 (2026): who qualifies for the homebuyer loan, and when you can apply

Proposition 37 creates a state loan for middle-income Californians buying a newly built home: up to 17% of the price, on top of a 3% down payment. Voters approved it on November 3, 2026, in unofficial returns. Here is who qualifies, which homes count, the estimated income limit and price cap in every county, and what is still unknown, from the measure’s text.

Checked against the enacted text of the text of Proposition 37 in the Official Voter Information Guide · Updated November 7, 2026

At a glance

What it is: A state second mortgage covering up to 17% of the price of a newly built home, on top of the buyer’s own 3% or more.
Who qualifies: California residents of at least one year who will live in the home, earning no more than 200% of area median income for their household size.
First-time buyers only?: No. The buyer must be the home’s first purchaser, not a first-time buyer.
Which homes: New houses, townhomes, condos and manufactured homes, and condos in converted commercial buildings, priced up to 125% of the county’s conforming loan limit: $1,040,937 to $1,561,406 in 2026.
Repayment: Fixed-rate monthly payments. CalHFA sets the rate and term; no prepayment penalty.
Money: Up to $25 billion in CalHFA revenue bonds, repaid by borrowers, not the state’s general fund.
Can I apply?: Not yet. As of November 7, 2026, CalHFA has no application. It must launch the program by December 2027.

Can I apply for Prop 37 yet?

No. As of November 7, 2026, there is no application, no lender list and no interest rate.

Application status, November 7, 2026: not open. The California Housing Finance Agency (CalHFA) runs the program and had posted nothing about it. The measure gives CalHFA until one year after it takes effect, so by about December 2027. Any site taking “Prop 37 applications” before CalHFA announces the program is not the program.

When it opens, you won’t apply to the state directly. Section 51515.03 has CalHFA contract with banks, credit unions and mortgage lenders to make and service the loans, and Section 51515.04 requires every applicant to have a licensed California real estate agent or broker of their choosing. Until then, the steps you can take are the ones any buyer takes: check the estimated income limit for your county below, and check your credit, since CalHFA will set minimum credit scores and debt-to-income limits to match Fannie Mae, Freddie Mac or FHA rules.

Key dates

Certification deadline from Elections Code 15501; effective date from article II, section 10(a) of the California Constitution; launch deadline from Section 51515.05(a) of the measure.
Date	What happens
November 3, 2026	Voters approve Proposition 37, in unofficial returns. The AP called it the same night.
December 11, 2026	Deadline for the Secretary of State to certify the statewide results (the 38th day after the election).
By December 16, 2026	The measure takes effect five days after the results are filed: December 16 if they are filed on the deadline, earlier if sooner.
By December 2027	CalHFA must implement the loan program no later than one year after the effective date.

The AP called the measure at November 3, 2026, 9:06 p.m. Pacific. In the count KQED showed on November 7, 2026, with about 75% of the expected vote in, it led 6,218,448 (62%) to 3,799,932 (37.9%). Those are unofficial until certified.

Who qualifies for a Prop 37 loan

Four tests in the measure, plus the underwriting rules CalHFA will add.

Section 51515.01(a) requires every applicant to meet all of these:

California residency: a resident of the state for at least one year before applying.
Live in the home: move in as your primary residence within 60 days of closing. Investors and second homes don’t qualify.
Income: family income no more than 200% of the area median income for a family of the same size in the county or metropolitan area where the home is. See our estimated income limits by county below.
3% down, not borrowed or granted: at least 3% of the price, “from a source other than a grant or borrowed money.” CalHFA hasn’t said how it will treat gifts from family.

You don’t have to be a first-time buyer. The measure does not require applicants to be first-time buyers; it mentions them only for homebuyer education. What it requires is that you be the home’s first purchaser, which is a rule about the home, not about you. Someone who owns or has owned a home can qualify if they meet the other tests, though CalHFA could still add rules of its own, and it sets how long borrowers must live in the home (Section 51515.05(c)).

CalHFA adds the rest. Section 51515.05(e) has it set underwriting criteria, including minimum credit scores and debt-to-income ratios, consistent with Fannie Mae, Freddie Mac or FHA standards. If your credit score falls short, the lender must let you submit bank statements, pay stubs, assets and rent history for “cashflow underwriting” instead (Section 51515.04(b)). CalHFA will also require homebuyer education for borrowers it decides would benefit, including first-time buyers.

Which homes qualify

Newly built homes and homes in converted nonresidential buildings, sold to their first purchaser and within a price cap that differs by county.

Under Section 51515.01(b), a “qualified new home” is either:

a newly constructed house, townhome, row house, condominium or manufactured home, where you are the first purchaser; or
a condominium or other unit in a building that was nonresidential and was converted to housing, such as an office building, where you are the first purchaser.

Price cap: the sale price can’t exceed 125% of the Federal Housing Finance Agency’s one-unit conforming loan limit for the county. For 2026, that is $1,040,937 in counties at the baseline limit and $1,561,406 in the highest-cost counties, and in between in counties such as San Diego and Ventura. FHFA publishes new limits each November, so the caps will move before the program opens.

Builders can still sell these homes to anyone; the measure says nothing in it restricts sales to buyers outside the program. Existing, previously owned homes are not eligible at any price.

Estimated Prop 37 income limits and price caps by county

Estimated income limits by household size from 2026 state data, until CalHFA publishes its own, and each county’s 2026 home price cap.

CalHFA has not published Prop 37 income limits yet, and the measure lets it adjust for family size. The figures below are 200% of the median income the state Department of Housing and Community Development publishes for each county and household size in its 2026 State Income Limits (June 23, 2026), the state’s official area median income figures. Treat them as an estimate until CalHFA publishes its own. Price caps are 125% of each county’s 2026 one-unit conforming loan limit, rounded down to the dollar.

Jump to your county

Alameda · Alpine · Amador · Butte · Calaveras · Colusa · Contra Costa · Del Norte · El Dorado · Fresno · Glenn · Humboldt · Imperial · Inyo · Kern · Kings · Lake · Lassen · Los Angeles · Madera · Marin · Mariposa · Mendocino · Merced · Modoc · Mono · Monterey · Napa · Nevada · Orange · Placer · Plumas · Riverside · Sacramento · San Benito · San Bernardino · San Diego · San Francisco · San Joaquin · San Luis Obispo · San Mateo · Santa Barbara · Santa Clara · Santa Cruz · Shasta · Sierra · Siskiyou · Solano · Sonoma · Stanislaus · Sutter · Tehama · Trinity · Tulare · Tuolumne · Ventura · Yolo · Yuba

Estimated Prop 37 income ceiling (200% of 2026 area median income) by household size, and 2026 maximum home price

County	1 person	2 people	3 people	4 people	5 people	6 people	Max price
Alameda	$227,900	$260,500	$293,000	$325,600	$351,600	$377,700	$1,561,406
Alpine	$181,300	$207,200	$233,100	$259,000	$279,700	$300,400	$1,040,937
Amador	$154,700	$176,800	$198,900	$221,000	$238,700	$256,400	$1,040,937
Butte	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Calaveras	$143,600	$164,200	$184,700	$205,200	$221,600	$238,000	$1,040,937
Colusa	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Contra Costa	$227,900	$260,500	$293,000	$325,600	$351,600	$377,700	$1,561,406
Del Norte	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
El Dorado	$173,600	$198,400	$223,200	$248,000	$267,800	$287,700	$1,040,937
Fresno	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Glenn	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Humboldt	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Imperial	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Inyo	$136,100	$155,500	$175,000	$194,400	$210,000	$225,500	$1,040,937
Kern	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Kings	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Lake	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Lassen	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Los Angeles	$151,300	$173,000	$194,600	$216,200	$233,500	$250,800	$1,561,406
Madera	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Marin	$281,100	$321,300	$361,400	$401,600	$433,700	$465,900	$1,561,406
Mariposa	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Mendocino	$138,700	$158,600	$178,400	$198,200	$214,100	$229,900	$1,040,937
Merced	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Modoc	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Mono	$168,600	$192,600	$216,700	$240,800	$260,100	$279,300	$1,040,937
Monterey	$154,700	$176,800	$198,900	$221,000	$238,700	$256,400	$1,243,437
Napa	$231,600	$264,600	$297,700	$330,800	$357,300	$383,700	$1,272,187
Nevada	$196,600	$224,600	$252,700	$280,800	$303,300	$325,700	$1,040,937
Orange	$194,000	$221,800	$249,500	$277,200	$299,400	$321,600	$1,561,406
Placer	$173,600	$198,400	$223,200	$248,000	$267,800	$287,700	$1,040,937
Plumas	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Riverside	$149,100	$170,400	$191,700	$213,000	$230,000	$247,100	$1,040,937
Sacramento	$173,600	$198,400	$223,200	$248,000	$267,800	$287,700	$1,040,937
San Benito	$196,300	$224,300	$252,400	$280,400	$302,800	$325,300	$1,561,406
San Bernardino	$149,100	$170,400	$191,700	$213,000	$230,000	$247,100	$1,040,937
San Diego	$183,300	$209,400	$235,600	$261,800	$282,700	$303,700	$1,380,000
San Francisco	$281,100	$321,300	$361,400	$401,600	$433,700	$465,900	$1,561,406
San Joaquin	$151,300	$173,000	$194,600	$216,200	$233,500	$250,800	$1,040,937
San Luis Obispo	$181,400	$207,400	$233,300	$259,200	$279,900	$300,700	$1,250,625
San Mateo	$281,100	$321,300	$361,400	$401,600	$433,700	$465,900	$1,561,406
Santa Barbara	$166,700	$190,600	$214,400	$238,200	$257,300	$276,300	$1,177,312
Santa Clara	$287,700	$328,800	$369,900	$411,000	$443,900	$476,800	$1,561,406
Santa Cruz	$192,100	$219,500	$247,000	$274,400	$296,400	$318,300	$1,561,406
Shasta	$142,500	$162,900	$183,200	$203,600	$219,900	$236,200	$1,040,937
Sierra	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Siskiyou	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Solano	$174,400	$199,400	$224,300	$249,200	$269,100	$289,100	$1,040,937
Sonoma	$186,800	$213,400	$240,100	$266,800	$288,100	$309,500	$1,121,250
Stanislaus	$137,900	$157,600	$177,300	$197,000	$212,800	$228,500	$1,040,937
Sutter	$142,700	$163,000	$183,400	$203,800	$220,100	$236,400	$1,040,937
Tehama	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Trinity	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Tulare	$135,900	$155,400	$174,800	$194,200	$209,700	$225,300	$1,040,937
Tuolumne	$143,100	$163,500	$184,000	$204,400	$220,800	$237,100	$1,040,937
Ventura	$189,800	$217,000	$244,100	$271,200	$292,900	$314,600	$1,293,750
Yolo	$190,300	$217,400	$244,600	$271,800	$293,500	$315,300	$1,040,937
Yuba	$142,700	$163,000	$183,400	$203,800	$220,100	$236,400	$1,040,937

For households of seven or eight, the same estimate is double HCD’s median for that size, in the same HCD table. For a family of four, the estimated limit runs from $194,200 in Fresno County to $401,600 in San Francisco and $411,000 in Santa Clara County.

Examples. A family of four in Los Angeles County could earn up to about $216,200 and buy a new home priced up to $1,561,406. In Santa Clara County the figures are $411,000 and $1,561,406; in San Diego County, $261,800 and $1,380,000. All use the estimated income limits and 2026 caps above.

How the loan works and what it could cost

A fixed-rate second mortgage with monthly payments. CalHFA has not set the rate or term.

Section 51515.05(b) makes each Prop 37 loan a second mortgage, behind your main mortgage, covering no more than 17% of the price, the part a down payment would usually cover. That is a ceiling, not a promised amount. If CalHFA lends the full 17% toward the price and you put in 3%, your first mortgage covers the remaining 80%. A smaller loan, or part of it going to closing costs, which CalHFA may allow, leaves more for the first mortgage or for you. The terms the measure fixes:

a fixed interest rate, with no penalty for paying early;
an origination fee of no more than 0.5% of the loan or $290, whichever is greater, and no other lender fees unless CalHFA allows them;
the ability to request a temporary hardship deferral of interest payments, subject to CalHFA’s criteria.

Everything else, including the interest rate, the term and how much principal you repay each month, CalHFA sets at levels that are “practical and favorable to applicants” but enough to repay the bonds and the program’s costs (Section 51515.05(c)). So the rate will depend on what CalHFA pays to borrow.

Illustration only: a $750,000 new home under Prop 37

Price	$750,000
Your down payment (3%)	$22,500
Prop 37 loan (17%)	$127,500
First mortgage (80%)	$600,000
Prop 37 loan payment at 5%, 30 years	$684 a month
Prop 37 loan payment at 6%, 30 years	$764 a month
Prop 37 loan payment at 7%, 30 years	$848 a month

The example assumes the full 17% goes toward the price, none to closing costs. The three rates and the 30-year term are assumptions to show the scale, not CalHFA’s terms. The payment is on top of your first mortgage, property tax and insurance.

Prop 37 vs. Dream For All

Both are CalHFA down payment loans. They work very differently.

	Prop 37	Dream For All
Amount	Up to 17% of the price; no dollar cap in the measure	Up to 20%, no more than $150,000
Payments	Monthly, fixed rate	None monthly; when you sell, transfer or pay off the first mortgage, repay the loan plus a share of any appreciation tied to the assistance percentage (20% assistance means a 20% share, or 15% for buyers at or below 80% of area median income)
Buyer	Any California resident of a year or more, buying a new or newly converted home as its first purchaser	All borrowers first-time buyers; at least one first-generation
Income	200% of area median income	CalHFA’s Dream For All limits (about $168,000 in Los Angeles County, $309,000 in Santa Clara County in 2026)
How chosen	Not set yet	Random drawing; the 2026 application window ran February 24 to March 16 and is closed
Funded by	Up to $25 billion in bonds repaid by borrowers	State funds; CalHFA said in January 2026 it expected $150–200 million for the year

Dream For All terms are from CalHFA’s program page and its January 16, 2026 announcement. Whether a buyer could combine the two is up to CalHFA, but Dream For All can’t supply Prop 37’s 3%: that has to come from money that isn’t borrowed or a grant.

Converted office buildings count

A condo in a building converted from offices or other commercial use is a qualified new home.

Most coverage describes Prop 37 as a loan for new construction. Section 51515.01(b)(1)(B) also covers a condominium or other unit “in a building that was a nonresidential structure and was retrofitted or repurposed for residential use,” sold to its first purchaser under the same price cap. A converter that sells its units as condos rather than renting them could sell to buyers using the loan.

That links Prop 37 to the conversion rules this site tracks. California’s Office to Housing Conversion Act (AB 507) makes qualifying conversions by-right since July 1, 2026. Our models for Downtown San Jose and San Francisco analyze buildings as rentals, not condo sales, so they don’t estimate what a for-sale conversion would sell for.

For builders: any developer can build homes buyers use the loan on. A developer can also opt into the “qualified builder option” (Section 51515.02) by certifying its homes meet the program’s rules; CalHFA must confirm within 30 days. Builders in the option accept labor standards drawn from Public Resources Code 21080.66 and liability for their contractors’ wage and licensing violations. In return their homes get modified construction-defect procedures: notices must identify each home and defect, builders may talk directly with homeowners and obtain releases for completed repairs, and builders may move to dismiss a suit the homeowner hasn’t pursued 120 days after a court pauses it. Attorney contingency fees on defect claims for any qualified new home are capped at 30% unless a court approves more.

What isn’t settled yet

Rates, term and fees. CalHFA sets them; the measure fixes only the fee ceiling and requires a fixed rate.
The official income table. CalHFA may adjust for family size differently from the state table used above.
How much money, and when. CalHFA decides how many of the $25 billion in bonds to sell and when, which depends on investor demand. The Legislative Analyst notes the program’s reach depends on that demand, on how the loan’s cost compares with other options, and on whether it leads to more homes being built and sold.
How long you must live there. CalHFA sets residency-duration rules.
Changes by the Legislature. Lawmakers can amend the measure with a 60% vote of each house and the governor’s signature, if the change furthers its purposes (Section 3).

Questions

Did Prop 37 pass in California?

Yes, in unofficial returns. The Associated Press called it on November 3, 2026, 9:06 p.m. Pacific; with about 75% of the expected vote counted, it led 62% to 37.9%. The Secretary of State must certify the results by December 11, 2026, and the measure takes effect five days after they are filed.

Who is eligible for the Prop 37 home loan?

A buyer who has lived in California for at least one year before applying, will move into the home as a primary residence within 60 days of closing, has family income no more than 200% of the area median for a family of the same size, and pays at least 3% of the price from a source other than a grant or borrowed money. The home must be newly built (or a newly converted commercial building) and the buyer must be its first purchaser. CalHFA will also set credit and debt-to-income rules.

What are the Prop 37 income limits?

200% of the area median income for your household size in the county or metro area where the home is. CalHFA has not published its own table. Our estimate from the state’s 2026 median incomes, for a family of four, is about $194,200 in Fresno County, $216,200 in Los Angeles County and $411,000 in Santa Clara County.

Do you have to be a first-time homebuyer for Prop 37?

No. The measure requires the buyer to be the first purchaser of the home, meaning it is new or newly converted, but it does not require that the buyer has never owned a home. CalHFA may require homebuyer education for first-time buyers.

When can I apply for Prop 37?

Not yet. As of November 7, 2026, CalHFA had no Prop 37 application or program page. The measure requires CalHFA to implement the program no later than one year after it takes effect, which is December 2027 if the results are filed on the December 11, 2026 deadline. Loans will be made through lenders CalHFA contracts with.

What is the maximum home price under Prop 37?

125% of the Federal Housing Finance Agency’s one-unit conforming loan limit for the county. With 2026 limits that is $1,040,937 in most counties and $1,561,406 in the highest-cost ones, such as Los Angeles, San Francisco and Santa Clara. FHFA updates the limits each year.

Do you have to pay back the Prop 37 loan?

Yes. It is a fixed-rate loan secured by a second mortgage, repaid in monthly payments. CalHFA sets the interest rate at the level needed to repay the bonds that fund it while keeping costs to buyers as low as possible. Borrowers can request a temporary hardship deferral of interest payments.

Can I use Prop 37 to buy an existing home?

No. Only a new home where you are the first purchaser qualifies: a newly built house, townhome, row house, condominium or manufactured home, or a unit in a commercial building converted to housing.

What is the difference between Prop 37 and Dream For All?

Dream For All, CalHFA’s existing program, gives up to 20% (capped at $150,000) to first-time, first-generation buyers chosen by lottery, with no monthly payment; the loan is repaid with a share of appreciation tied to the assistance percentage when the home is sold. Prop 37 lends up to 17% with monthly payments, has no first-time or first-generation test, and is limited to new homes.

Can I use a gift or another down payment program for the 3%?

The measure says the buyer’s 3% must come from a source other than a grant or borrowed money, so a grant or another down payment loan can’t supply it. CalHFA has not said how it will treat gifts from family.

Does Prop 37 cost taxpayers money?

The Legislative Analyst estimates no direct state or local costs. The bonds are revenue bonds repaid from borrowers’ payments, and each must state that it is not a debt of the State of California.

Sources

More on this year’s state housing changes is in new California housing laws for 2027.

More California law: Office to Housing Conversion Act (AB 507) · New California housing laws for 2027 · San Francisco Prop C (Housing Trust Fund) · California’s new housing laws and Ro Khanna

Federal law: The ROAD to Housing Act explained · Environmental review changes · CDBG and HOME changes · Opportunity Zones · The 2027 Opportunity Zone map · The Innovation Fund · Innovation Fund reforms, city by city · Housing permits in every CDBG city · The Build Now Act · Manufactured housing and the chassis rule · Chassis-free manufactured homes by state · Manufactured home zoning by city · RESIDE Act funding status · How RESIDE grants should be sized · Which buildings meet the RESIDE test · The ban on large investors buying homes