Prop 37's $25B Home Loan Plan | November 2026

by Paul Peletta

Welcome to November! I hope you all have a relaxing week ahead, free of too many midterm election dreams (or nightmares!).

But seriously... November already. It’s crazy how fast this year is moving. The cooler weather is finally here to stay, which means the major holidays are just around the corner. If you’re looking for ways to enjoy the season, be sure to check out the Local Events for November section at the bottom of this email.

I’m wise enough not to get my hopes up too high regarding the Governor of California race, but I will be very heavily interested in this year’s propositions. Specifically, Props 1, 37, 39, 40, 41, 42, 43, and 45.

I did a quick primer a couple of weeks ago on Props 1, 37, and 45. However, I wanted to highlight Proposition 37 a little bit more because it directly affects interested homebuyers in our area.

Why Prop 37 Matters to Sacramento Homebuyers

In short, Proposition 37 aims to create a state-run loan program to help middle-income Californians purchase newly constructed homes.

Here is why I am calling this a no-brainer:

Big Funding, Big Impact: It authorizes a $25 Billion home loan program. That’s "Billion" with a "B." This is a serious effort to make homeownership more accessible.
Zero Cost to Taxpayers: This is the key part for me. It is not funded by tax dollars. Instead, the money comes from investors who buy bonds.
Self-Sustaining Model: The state does not carry the cost. The investors carry the burden of being paid back, and they are repaid entirely by the mortgage payments from the homeowners who use the program.