With 30-year fixed mortgage rates hovering in the mid-6% range, many Californians are weighing their options: is it smarter to hold off for potentially lower rates, or to take advantage of paths that require a smaller down payment? Proposition 37, a new ballot measure under consideration, could offer a game-changer for middle-income buyers. If approved, it would allow qualifying Californians to borrow up to 17% on select new builds, dropping the minimum cash needed at closing to just 3%. For context, with California’s median listing price around $745,000 in early Q3 2026, that’s about $22,300 for a down payment—an amount that could bring homeownership within reach for more families.
Of course, this assistance would come in the form of a second mortgage. While it could help buyers avoid PMI, it’s important to remember that having two loans might complicate refinancing down the road. My experience guiding clients through REOs, short sales, and complex financing means I’m always focused on long-term strategy as well as the immediate opportunity. The current guidance is clear: expand your search, compare lenders, boost your financial profile, and keep saving—rather than betting everything on rates falling in the future. As always, careful planning and a clear understanding of your options are key to making the right move in our ever-evolving California market.
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