California mortgage market at a glance
| Item | California 2026 |
|---|---|
| Conforming loan limit (1-unit) | $832,750 baseline; up to $1,249,125 in high-cost counties (LA, Bay Area, coastal metros) |
| FHA loan limit (1-unit) | $541,287 to $1,249,125 depending on county |
| Foreclosure process | Non-judicial (trustee’s sale) in nearly all cases |
| State housing agency | California Housing Finance Agency (CalHFA) |
California is the state where loan limits actually matter. The gap between a baseline county and a ceiling county is over $400,000 of borrowing power at conforming rates. Which side of the line your county sits on should shape your entire shopping strategy.
Loan limits in California
The 2026 baseline conforming limit is $832,750, but a long list of California counties qualify as high-cost areas where the limit rises to the national ceiling of $1,249,125. Los Angeles, Orange, San Francisco, San Mateo, Santa Clara, Alameda, and most of the coastal metros sit at or near the ceiling. Inland counties like Fresno, Kern, and most of the Central Valley stay at the baseline. Check your exact county on the FHFA map before you assume anything.
Above your county’s limit, you are shopping a jumbo loan. In California that is a routine product with competitive pricing, but stiffer credit, reserve, and down payment requirements. Below it, you get conforming pricing. FHA limits track the same county pattern, from $541,287 inland up to $1,249,125 on the coast, which means FHA’s 3.5% down payment works even on a million-dollar Bay Area condo.
First-time buyer programs in California
The California Housing Finance Agency (CalHFA) is the state’s housing finance agency, and its programs are worth real money in a state where the down payment is the whole battle. The MyHome Assistance Program provides a deferred-payment junior loan, up to 3.5% of the purchase price on FHA loans and 3% on conventional, to cover down payment and closing costs. Payments are deferred until you sell, refinance, or pay off the home. CalHFA also offers below-market first mortgages and periodically runs larger shared-appreciation programs that come and go with state funding.
CalHFA lends through approved loan officers, not directly. Income caps apply and homebuyer education is required. Current programs are listed at calhfa.ca.gov.
What closing on a home costs in California
Closings run through escrow companies, no attorney required. The statewide documentary transfer tax is $1.10 per $1,000 of the price, but cities can stack their own on top. Some are serious: Los Angeles adds its own transfer tax plus the “mansion tax” on sales above roughly $5 million. Title insurance and escrow fees scale with price, so on a typical California purchase, closing costs land in the tens of thousands. Get escrow and title fees quoted early. Both are shoppable.
Foreclosure is non-judicial. A California trustee’s sale needs no judge and can wrap in about four months from the notice of default. State law (the Homeowner Bill of Rights) requires servicers to contact you about alternatives first. Do not wait for them.
How to get the best rate in California
- Know your county’s limit first. Whether you are conforming, high-balance conforming, or jumbo changes which lenders will be cheapest. Start with our best mortgage lenders list.
- Get quotes from a jumbo specialist if you are over the limit. Banks fighting for deposit relationships routinely undercut everyone on jumbos.
- Check CalHFA before writing offers. MyHome’s 3.5% can be the difference between buying this year and saving for three more.
- Model the real monthly cost with our mortgage calculator, including California property taxes and fire-zone insurance.
- Think hard about down payment size. Our down payment guide covers the high-balance plays that matter in expensive markets.
For lender rankings, rate trends, and every loan type explained, start at our mortgages hub.