California Home Loans — Home Mortgage California for Purchase

The minimum down payment in California depends on the loan type: 3% for a conventional loan (some 1% programs exist with lender contribution), 3.5% for an FHA loan, $0 down for a VA loan (veterans only), and typically 10% – 20% for a jumbo loan. On the median California home price of about $850,000, a 3.5% FHA down payment is around $29,750. Save Financial also offers down payment assistance programs through CalHFA and city-specific grants in Los Angeles, San Diego, and Sacramento.

The minimum credit score depends on the loan program: 580 for FHA (3.5% down), 620 for conventional, 600 for VA (some lenders go to 580), and 700+ for jumbo. However, your credit score also affects your interest rate — every 20-point improvement typically lowers your rate by 0.125%. On a $500,000 California mortgage, going from a 660 FICO to a 740 FICO can save you over $80,000 in interest across a 30-year loan.

From pre-approval to closing, the typical California home purchase takes 45-60 days: 15-30 days to find a home and have an offer accepted, then 30 days from contract to close. Save Financial closes efficiently from contract, which lets buyers offer a faster close time as a competitive advantage in bidding wars. In hot markets like the Bay Area, a 14-21 day close offer can beat a higher dollar offer.

As a general rule, you need annual income equal to roughly 3-4x the home price after down payment. For a $700,000 home with 10% down (loan amount $630,000), you'd want $175,000 – $210,000 in annual household income to comfortably qualify, depending on other debts. The hard limit: total monthly debt payments (mortgage + property tax + insurance + other debts) cannot exceed 50% of gross monthly income for most conventional programs. Save Financial's free pre-qualification calculator gives you an exact answer based on your specific numbers.

Yes, two programs allow 0% down: 1) VA loans for eligible veterans, active-duty military, and surviving spouses, and 2) USDA loans in designated rural areas (parts of the Central Valley, far Northern California, and inland desert regions). For non-veterans in suburban or urban areas, the lowest-down options are FHA at 3.5% down and conventional at 3% down. Some down payment assistance programs (CalHFA MyHome, GSFA Platinum, city-specific grants) can effectively reduce out-of-pocket to near $0.

Get pre-approved. A 'pre-qualification' is informal — based only on what you told the lender, with no document verification. A 'pre-approval' involves a credit pull, income verification, and asset documentation, and produces a formal letter that real estate agents and sellers actually trust. In California's competitive markets, most listing agents won't accept offers without a verified pre-approval letter dated within 30 days.

California buyer closing costs typically run 2% – 3% of the purchase price, OR about $15,000 – $25,000 on a median-priced California home. The biggest line items: title insurance (split between buyer and seller, varies by county), escrow fee, lender origination, appraisal ($600-$800), and prepaid property tax/insurance (typically 12-14 months at close). Sellers sometimes contribute up to 3% of the purchase price toward buyer closing costs as a negotiating concession.

For 2026, the baseline conforming loan limit in most California counties is $806,500. In 'high-cost areas' — Los Angeles, San Francisco, San Mateo, Santa Clara, Orange County, Marin, Alameda, Contra Costa, San Diego, and several others — the high-balance conforming limit rises to $1,209,750. Loans above the conforming limit are 'jumbo loans' and require different qualification standards (typically 20% down, 700+ FICO, 12 months of reserves).

Technically yes, but practically no. In any competitive California market — which is most of them — listing agents discard offers without an attached pre-approval letter. Many sellers won't even consider offers without verified financing. Save Financial issues pre-approvals within 24 hours of a complete application, so there's no reason to skip this step.

In California, buyers traditionally pay: lender fees, escrow fee (split 50/50 with seller in Northern California; buyer-paid in Southern California), title insurance lender's policy, appraisal, recording fees, and prepaid property tax/insurance. Sellers traditionally pay: real estate commissions (5-6% of price), title insurance owner's policy, county transfer tax ($1.10 per $1,000 of value), HOA transfer fee, and any agreed buyer credits. The Closing Disclosure (CD) issued 3 days before closing shows exactly who pays what.