# Opinion: Ted Jenkin Says California's $25 Billion Down-Payment Plan, Proposition 37, Helps People Borrow More, Not Pay Less

The financial adviser argues a second state loan lowers cash at closing but raises the monthly bill, and could push prices up unless supply grows. He grants the bonds are not a taxpayer giveaway.

- Section: [Opinion](https://rightnewsrightnow.com/opinion/)
- Published: 2026-10-26
- By: RightNewsRightNow Staff
- Canonical page: https://rightnewsrightnow.com/articles/opinion-ted-jenkin-california-proposition-37-25-billion-down-payment-bonds-borrowing-more-fox-news/

Ted Jenkin, president of Exit Stage Left Advisors and host of "The Red, White & Green Show," argues that Proposition 37 on California's November ballot would add to buyers' debt without making housing cheaper.

The measure. It would let the California Housing Finance Agency issue up to $25 billion in revenue bonds for down-payment help. A buyer would put down as little as 3%, a state second mortgage would cover up to 17%, and a regular mortgage would cover the other 80%.

His math. On an $800,000 home, a 20% down payment is $160,000 with a $640,000 loan. Under the program, Jenkin says, the buyer could put down $24,000 and get a $136,000 state loan. Using a hypothetical 6.5% rate on the first mortgage and 7% on the second over 30 years, he figures monthly principal and interest would rise from about $4,045 to $4,950, roughly $900 more, before taxes, insurance and upkeep. He notes the actual program rates are not set, so the numbers are illustrative.

His argument. "Borrowing more money doesn't make something cost less," he writes. If more buyers get bigger financing packages while the number of homes stays flat, he says, prices can rise, as he says happened during COVID-19. He also asks whether this repeats the logic behind the 2008 crisis. His fix is to make building easier: fewer permit delays, lower construction costs and more housing where people want to live.

What he concedes. Jenkin says Prop 37 "isn't a $25 billion taxpayer-funded giveaway," because the bonds are meant to be repaid by borrowers' mortgage payments, not the general fund. He cites the state's legislative analyst as estimating no direct state or local costs, and says supporters argue help for new-construction buyers could spur building. He allows that a careful program could help some well-paid families who cannot save a down payment.

Note for readers: this is an opinion column. The payment figures are his illustration, and the 2008 comparison is his view, not a finding. We did not review the measure's text.

## Source

Original reporting: [Fox News (opinion by Ted Jenkin)](https://www.foxnews.com/opinion/california-wants-spend-25-billion-put-homebuyers-deeper-debt)