Home Purchase Loans in California
Buying in California means a loan limit that changes at the county line, an insurance market that has to be checked before you offer, and a supplemental tax bill in your first year. We are a DFPI-licensed mortgage lender, price every loan type side by side, and are licensed statewide, in all 58 counties, closing through a California escrow company near you.
California DFPI Financing Law License 60DBO-117390. NMLS #1925352.
Buying in California, 2026
Conforming limit
$832,750 to $1,249,125, by county
Down payment
From 3% conventional, 3.5% FHA, 0% VA
County transfer tax
$1.10 per $1,000, customarily seller-paid; cities add their own
Property tax
About 1% of the price plus local charges, reset at purchase
Closing
Escrow company; no attorney
3%
Minimum down payment on a conventional loan
$1,249,125
2026 conforming and FHA ceiling in the coastal counties
58
California counties, licensed statewide
4.9
Average of 5,300+ Google reviews
What a California purchase looks like from the financing side.
Price decides the loan. In Los Angeles, Orange and the core Bay Area counties the 2026 conforming limit is $1,249,125, the highest allowed anywhere in the country, and FHA reaches the same figure, so a $1.2 million loan can be a conventional or FHA loan rather than a jumbo. San Diego sits at $1,104,000, Ventura, Napa and the Central Coast between there and the $832,750 baseline that covers Sacramento, the Inland Empire and the Central Valley. We check the county before we quote, and we price a high-balance conforming loan against a jumbo whenever a file is near the line.
Then the house has to be insurable. A lender will not fund without a bound homeowners policy, and in wildfire-exposed areas that may mean the California FAIR Plan plus a wrap-around policy at a higher price, counted in the payment you qualify on. Property taxes reset to about 1 percent of the purchase price plus local charges under Proposition 13, with a supplemental bill in the first year for the difference from the seller’s old assessment. The closing itself runs through an escrow company, the county transfer tax is customarily the seller’s, and city transfer taxes in Los Angeles, San Francisco, Oakland and others follow local custom.
This page covers buying a home in California. For the state as a whole, including our California licence and every loan we offer here, see our California page; for the purchase process itself, see the purchase hub. If you are weighing programs, FHA in California and VA in California go deeper, and when you own, refinancing in California picks up the story.
Three kinds of California buyers, and how we finance each.
The loan that fits depends less on the house than on your credit, your savings, the county and how long you plan to stay.
First home
Low down payment
Conventional from 3 percent down for eligible borrowers with a 620 score and mortgage insurance you can ask to cancel at 80 percent of the original value, or FHA from 3.5 percent with a 580 score and county limits up to $1,249,125, which makes FHA a real option in Los Angeles and the Bay Area, not only inland. A documented gift from family can supply the down payment on either.
Near the limit
High-balance and jumbo
In the high-cost counties a conventional loan runs up to the county limit as a high-balance loan, with pricing a little above a standard conforming loan but well inside jumbo rules. Above the county figure a jumbo takes over, with its own credit, reserve and appraisal requirements. We price both and tell you when a larger down payment keeps the loan under the line.
Veterans
VA with nothing down
California has the largest veteran population in the country, from Camp Pendleton and San Diego to Travis, Lemoore and Twentynine Palms. A VA loan needs no down payment and no monthly mortgage insurance, has no loan limit with full entitlement even at $1.2 million, and the seller can pay your closing costs, with concessions such as prepaids and the funding fee capped at 4 percent of the loan.
The four loan types, and what each costs to use in California.
Program rules are federal; the last column is what changes in California. Your pro tells you which fits your file.
| Loan | Down payment and credit | In California |
|---|---|---|
| Conventional | 3% down for eligible borrowers from a 620 score; mortgage insurance you can ask to cancel at 80% of the original value, ending automatically at 78% | Conforming limit $832,750 inland and up to $1,249,125 on the coast; high-balance loans fill the gap in the high-cost counties |
| FHA | 3.5% down from a 580 score, 10% from 500; mortgage insurance for the life of the loan below 10% down | Limits match the conforming figure in the high-cost counties and start at $541,287 inland; condos need HUD approval and HOA dues count in the ratio |
| VA | Nothing down with full entitlement; funding fee 2.15% on first use with nothing down, exempt if you receive VA disability compensation | No loan limit with full entitlement; the VA requires a termite inspection; residual income after taxes, insurance and HOA dues usually decides large files |
| Jumbo | Typically 10% to 20% down, 700+ score and reserves after closing | Above the county limit, which is most of coastal California; lender-by-lender rules; appraisal review is stricter |
Sellers may pay closing costs within each program’s rules: up to 3% to 9% of the price on conventional depending on the down payment, up to 6% on FHA, and on VA any amount of ordinary closing costs, with concessions such as prepaids and the funding fee capped at 4% of the loan. In California the seller customarily pays the county transfer tax and, in the south, the owner’s title policy, so concessions usually go to the escrow fee, lender charges and prepaid items.
Insurance and the county line: the two California questions we answer before you offer.
No California loan funds without a bound homeowners policy, and where standard insurers have pulled back, the FAIR Plan plus a difference-in-conditions policy is what lenders accept. It costs more and it goes into the payment used to qualify you, so a home at the wildland edge in the foothills, the Santa Cruz Mountains or the Malibu hills can change what you can afford. We get a quote on the first house you are serious about, not the week of closing.
The county line decides whether your loan is conforming, high-balance or jumbo, and with it the down payment, the reserves and the pricing. A $1 million loan is a high-balance conforming loan in Alameda and a jumbo in Sacramento. We check the exact county figure against the home before you write the offer, and when a file sits near the line we show you what a slightly larger down payment does to the rate and the rules.
The Bay to the border
Purchases closed through a California escrow company near you, or with a mobile notary at your kitchen table.
Six California closing customs that shape your numbers.
California closes through escrow, with no attorney, and custom differs between the north and the south of the state. All of these are on your Loan Estimate from the start.
01
Escrow
An escrow company, independent in Southern California and usually part of the title company in the north, holds the funds and closes the file. The escrow fee is customarily split between buyer and seller.
02
County documentary transfer tax
$1.10 per $1,000 of the price, customarily paid by the seller in most counties: $440 on a $400,000 home. Who pays is written into the contract.
03
City transfer taxes
Los Angeles, San Francisco, Oakland, Berkeley, San Jose, Santa Monica, Culver City and others add their own, some tiered by price and some steep on high-value homes. We flag the city rate early so it is in the numbers.
04
Owner’s title policy
Seller-paid by custom in Southern California; in much of Northern California the buyer pays. The buyer pays for the lender’s policy everywhere.
05
Insurance before funding
A bound homeowners policy is required to fund. In wildfire-exposed areas that may be the California FAIR Plan plus a difference-in-conditions policy, and the premium goes into the payment lenders qualify you on.
06
Property taxes and the supplemental bill
Two instalments a year, due November 1 and February 1. In your first year a supplemental bill covers the step up from the seller’s assessed value to your purchase price; it is not escrowed, so plan for it.
What would a California purchase cost each month?
Pick a loan type and down payment, then add about 1.1 to 1.3 percent of the price a year for property tax and a realistic insurance figure. The result is the whole payment, which is the number lenders qualify you on.
The U.S. mortgage market right now.
National average rates from the Federal Reserve Bank of St. Louis FRED database: the Freddie Mac survey for conventional and the Optimal Blue indices for FHA and VA, shown as third-party market benchmarks, not MortgagePros pricing. Your rate and APR depend on your credit, down payment, loan type, the property and the day you lock.
Conventional 30-year fixed, U.S. average
7.40%
FHA 30-year fixed, U.S. average
7.18%
VA 30-year fixed, U.S. average
7.09%
Sources: Freddie Mac Primary Mortgage Market Survey (conventional, 30-year national average, week of Oct 8, 2026) and Optimal Blue Mortgage Market Indices (FHA and VA, 30-year national averages as of Oct 8, 2026), distributed through FRED, Federal Reserve Bank of St. Louis; the figures and dates refresh automatically from the source. These are third-party market benchmarks, not MortgagePros rates and not an offer of credit. Your rate and APR depend on your credit, loan type, property and lock date.
How a California purchase works with us.
Four steps, one licensed pro, and a closing through a California escrow office near you.
1
Pre-approval with real numbers
Income, assets and credit verified, with the county limit checked, the reset property tax and insurance in the payment, and any HOA or Mello-Roos charges included.
2
The right loan, priced side by side
Conventional, high-balance, FHA, VA and jumbo compared for your file, with the escrow and title customs for your county already in the estimate.
3
Insurance and property checks
Insurability confirmed on the first home you are serious about, condo review started before you offer, appraisal ordered the day the contract is signed.
4
Close through escrow
Signing at a California escrow office near you or with a mobile notary. Funds release when the deed records with the county, and the costs on the statement match the estimate.
Ready to buy in California?
A California-licensed pro gives you a pre-approval with the county limit, insurance and the reset property tax already in the numbers. Free, and it starts without a hard credit pull.
Buying in California, answered.
The questions California buyers ask us most. If yours is not here, a licensed pro will answer it directly, with no obligation.
What closing costs does a California buyer pay?
The lender’s fees, your share of the escrow fee, the lender’s title policy and, in much of Northern California, the owner’s policy, an appraisal, the first year of homeowners insurance, and prepaid taxes and interest. The seller customarily pays the county transfer tax; city transfer taxes follow local custom. On a $700,000 purchase with 5 percent down, plan on roughly 2 to 3 percent of the price before any seller credit, plus the supplemental tax bill that arrives after closing.
Is my loan conforming or jumbo?
It depends on the county. In 2026 the one-unit conforming limit is $1,249,125 in Los Angeles, Orange and the core Bay Area counties, $1,104,000 in San Diego, and $832,750 in Sacramento, Riverside, San Bernardino and most of the interior. A loan above the county figure is a jumbo and follows the individual lender’s rules; a loan between $832,750 and the county figure is a high-balance conforming loan. We check the county before we quote.
How much do I need down?
Conventional loans start at 3 percent down for eligible borrowers with a 620 credit score, FHA at 3.5 percent with a 580 score, and VA loans need nothing down for eligible veterans. A documented gift from family can supply the down payment on all three. Jumbo loans above the county limit typically want 10 to 20 percent.
What is a supplemental tax bill?
Under Proposition 13 the county reassesses a home to its purchase price when it sells. Your regular tax bill is still based on the seller’s old assessed value for a while, so the county sends a one-time supplemental bill for the difference, usually within a few months of closing. It is not escrowed by the lender, so budget for it.
Can I still get insurance in a wildfire area?
Usually, but not always from a standard carrier. Where insurers have pulled back, the California FAIR Plan provides fire coverage and a separate difference-in-conditions policy covers the rest. Lenders accept the combination, but it costs more and it counts in the payment used to qualify you, so we price it before you are under contract.
Do I have to come to Michigan?
No. Your licensed pro handles the loan by phone, email and e-signature, and the closing runs through a California escrow company near you, with a mobile notary if you prefer. Our DFPI licence is what allows us to lend in California.
Talk to a California-licensed pro about buying a home.
Tell us what you are looking to do and where in California. A licensed pro will call back, usually the same business day. Asking does not start a loan or require a hard credit pull.
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Visit our office
880 W. Long Lake Rd, Suite 300
Troy, Michigan 48098, just off I-75. Free parking.
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California DFPI Financing Law License 60DBO-117390. NMLS #1925352. Rated 4.9 across 5,300+ Google reviews.