Mortgages in California
California has the highest median home prices of any state. The Bay Area and Southern California metros far exceed FHFA conforming limits, requiring jumbo financing for most purchases. First-time buyer programs are concentrated in lower-cost inland and Central Valley markets.
California at a glance
Population
39.0M
U.S. Census Bureau, July 1, 2025 estimate
Editorial note — California
CalHFA programs are genuinely impactful for buyers in inland California where prices fall within program limits. Bay Area and coastal LA buyers at median prices typically exceed CalHFA income limits. Shopping multiple lenders — including credit unions, mortgage brokers, and CalHFA-approved lenders — is essential given the market's rate-sensitivity.
California Housing Finance Agency
The state HFA, first-time buyer programs, and down-payment assistance available in California.
Primary regulator
California Housing Finance Agency (CalHFA)
CalHFA provides below-market first mortgage loans, down-payment assistance (MyHome Assistance Program), and the Dream For All Shared Appreciation Loan for qualifying California first-time homebuyers.
Verify HFA programs ↗First-time buyer & DPA programs
CalHFA's MyHome Assistance Program provides a deferred-payment loan for down payment and/or closing costs. The Dream For All Shared Appreciation Loan provides up to 20% of the home price — borrowers share a portion of future appreciation with CalHFA on resale. Both programs require a CalHFA-approved first mortgage. Visit calhfa.ca.gov for current program status; Dream For All has had limited-round releases due to high demand.
Federal resources: HUD (U.S. Department of Housing and Urban Development) publishes state-by-state homebuyer resources and lists approved nonprofit housing counselors. Visit hud.gov for CFPB mortgage tools and the FHFA for conforming loan limits. hud.gov
What to compare when shopping a mortgage in California
Mortgage rates and fees for the same borrower vary meaningfully across lenders. Shopping at least 3–4 lenders within a 14-day window counts as a single credit inquiry.
Interest rate vs. APR
APR includes lender fees (origination, points) and reflects the true annual cost. A lower rate with high fees can cost more than a slightly higher rate with no fees, depending on how long you keep the loan.
Loan type (conventional, FHA, VA, USDA)
Loan type determines down-payment requirements, mortgage insurance rules, and eligibility criteria. FHA loans allow lower credit scores and down payments; VA and USDA offer zero-down options for qualifying borrowers.
Down payment and PMI
Conventional loans require PMI (private mortgage insurance) below 20% down — typically 0.5–1.5% of the loan annually. FHA has its own mortgage insurance premium (MIP) regardless of down payment.
State HFA programs
Check the California Housing Finance Agency (CalHFA) for first-time buyer mortgage programs and DPA before choosing a lender. HFA programs can reduce cash-to-close significantly.
Loan term
30-year fixed is the standard. 15-year fixed reduces total interest paid dramatically but raises monthly payments. ARMs carry rate-reset risk and are appropriate only for buyers with a defined short-term horizon.
Lender responsiveness and lock policy
In competitive markets, lender responsiveness and willingness to issue a fully underwritten pre-approval (not just a pre-qualification) can make the difference between winning and losing an offer.
Compare top mortgage lender picks for California buyers
Ranked by rates, fees, and loan-type availability. Ranked by our published methodology.
Mortgages in California — common questions
What is CalHFA? +
CalHFA (California Housing Finance Agency) at calhfa.ca.gov is California's state HFA. It offers the MyHome Assistance Program (DPA deferred loan), Dream For All Shared Appreciation Loan, and CalHFA-backed first mortgages for qualifying first-time buyers.
What is the CalHFA Dream For All program? +
Dream For All is a shared-appreciation loan covering up to 20% of the purchase price. On resale, CalHFA receives a proportional share of the home's appreciation. The program has had limited funding rounds; check calhfa.ca.gov for current availability.
Do I have to be a first-time buyer for CalHFA? +
Most CalHFA programs require first-time buyer status (no ownership in any principal residence in the past 3 years). Some programs have exceptions for specific targeted areas. Verify at calhfa.ca.gov.
What is the conforming loan limit in California? +
California has both standard and high-cost county limits. Many Bay Area, LA, and coastal counties have higher FHFA conforming limits. Check current county-specific limits at fhfa.gov. Loans above the limit require jumbo financing.
How do I find a CalHFA-approved lender? +
CalHFA maintains a list of approved lenders at calhfa.ca.gov. HUD-approved housing counselors in California are listed at hud.gov/states/california.
Ready to compare mortgage lenders in California?
We rank, against our published methodology, top mortgage lenders by rates, fees, and loan-type availability. Shopping 3–4 lenders within a 14-day window counts as a single inquiry for credit-scoring purposes.
Compare mortgage options →ClearValue Lending is an independent editorial platform and is not a mortgage broker, lender, or loan originator — we do not originate loans or provide mortgage advice. Some links are affiliate links — see disclosure below. Rankings are based on editorial criteria, not compensation. ClearValue Lending does not guarantee loan approval, specific rates, or program availability.
Sources
- California Housing Finance Agency (CalHFA) — Official Website ↗
- U.S. Department of Housing and Urban Development (HUD) ↗ — HUD-approved housing counselors and homebuyer resources by state
- U.S. Census Bureau ↗ — July 1, 2025 population estimates
Editorial disclaimer: This page provides general educational information about mortgages and housing finance programs in California. It is not legal, tax, or financial advice and does not guarantee loan approval, rates, or program availability. HFA program details and conforming loan limits were accurate as of May 22, 2026. Verify current program terms directly with California Housing Finance Agency (CalHFA), HUD at hud.gov, and FHFA at fhfa.gov before applying. Scored against ClearValue's published methodology. Updated May 2026.
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