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Home Purchase Loan Requirements in California

Buying a home starts with knowing what lenders look for. Here are the core purchase mortgage requirements — and how flexible they really are.

MBReviewed by Mike Basti, Mortgage Broker & Founder · NMLS #377740
Quick Answer

Core requirements: a down payment (as low as 3–5%, or 0% for VA/USDA), credit usually 620+, verifiable income, a workable debt-to-income ratio, and closing-cost funds.

Down payment and credit

Down payments range from 0% (VA/USDA) to 3–5% (conventional/FHA) up to 20%+ to avoid mortgage insurance. Credit around 620+ opens most doors, and stronger credit sharpens your rate.

Income, DTI & funds

Lenders verify income, check your DTI, and confirm funds for down payment and closing costs. Self-employed? Bank-statement programs qualify you on real cash flow. We’ll map the lowest-barrier path for your situation.

RequirementTypical
Down payment0–5%+ (program-dependent)
Credit~620+
IncomeVerifiable; DTI reviewed
Closing costs~2–5% of price

Frequently asked questions

How much down payment do I really need?

As little as 0% (VA/USDA), 3% (conventional), or 3.5% (FHA). More down lowers or removes mortgage insurance.

What credit score do I need to buy?

Often 620+, though FHA can go lower. Better credit means a better rate. We’ll tell you where you stand.

Can I buy while self-employed?

Yes — conventional with tax returns, or bank-statement programs that qualify on deposits.

Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.

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