Getting a Mortgage
in California
California's real estate market is unlike any other in the nation. From conforming loan limits that vary dramatically by county to Proposition 13 property tax protections, CalHFA first-time buyer programs, and state-specific disclosure requirements — understanding California's unique mortgage landscape is essential. This comprehensive guide covers everything you need to know.
Last updated: March 2026
Conforming Loan Limits
by County
California has some of the highest conforming loan limits in the nation, with many counties designated as "high-cost" areas. The conforming loan limit determines the maximum loan amount that qualifies for conventional financing backed by Fannie Mae or Freddie Mac. Loans above this limit require jumbo financing.
High-Cost Counties (at or near the maximum conforming limit): Los Angeles, Orange, San Francisco, San Mateo, Santa Clara, Alameda, Contra Costa, Marin, San Diego, Ventura, Santa Cruz, Monterey, and Napa counties all have elevated limits reflecting their high home prices. This benefits buyers by allowing them to use conventional loans for higher-priced properties.
Standard Counties: Counties in the Central Valley and other more affordable regions typically have the standard national conforming limit. Even this standard limit covers most purchases in these areas, where home prices are significantly lower.
FHA Limits: FHA loan limits also vary by county in California, with high-cost areas having significantly higher limits. This makes FHA loans more versatile in expensive California markets than in many other states. Contact Theós Financial for current limits in your target county.
California-Specific
Mortgage Considerations
Proposition 13 Property Taxes
California's Proposition 13 (1978) limits property tax to 1% of the assessed value at the time of purchase, with annual increases capped at 2%. This means your property tax is based on your purchase price, not the current market value. This is a significant advantage for long-term homeowners, as your tax burden grows slowly even as home values appreciate. However, buyers should understand that purchasing a previously undervalued property means your tax basis resets to the purchase price.
CalHFA Programs
The California Housing Finance Agency (CalHFA) offers several programs to help first-time and qualified homebuyers. These include below-market-rate first mortgages, down payment assistance through the MyHome Assistance Program, the Zero Interest Program (ZIP), and the Mortgage Credit Certificate (MCC) tax credit. These programs can significantly reduce the cost of purchasing a home in California.
California Disclosure Requirements
California has some of the most comprehensive real estate disclosure requirements in the nation. Sellers must provide a Transfer Disclosure Statement (TDS), a Natural Hazard Disclosure (NHD) report covering earthquake fault zones, flood zones, fire hazard areas, and more. Buyers should also be aware of Mello-Roos special taxes and Homeowner Association (HOA) disclosures, which can significantly impact monthly costs.
California Closing Costs
Closing costs in California typically range from 2-5% of the purchase price. Key costs include escrow fees (California uses independent escrow companies rather than attorneys for closings), title insurance, recording fees, transfer taxes (varying by county and city), home inspection, appraisal, and lender fees. Theós Financial provides detailed closing cost estimates with every pre-approval.
Earthquake Considerations
California's seismic activity makes earthquake insurance a consideration for homeowners, though it is not required by lenders. The California Earthquake Authority (CEA) offers earthquake insurance policies. Buyers should factor this optional but recommended coverage into their housing budget. Your lender will not require it, but a major earthquake without coverage could be financially devastating.
California
Area Guides
Theós Financial serves homebuyers across the entire state of California. Explore our detailed area guides for the region that interests you.
Santa Clarita Valley
Our home — Valencia, Saugus, Canyon Country, Stevenson Ranch, Castaic, Newhall, Agua Dulce
SCV GuideCalifornia Buyer
Programs
California offers several programs designed to make homeownership more accessible.
First-Time Buyer Programs
CalHFA MyHome, ZIP, down payment assistance, and MCC tax credits help California first-time buyers reduce their entry costs. See our detailed California First-Time Buyer Guide.
VA Loans in California
California is home to some of the nation's largest military installations. Our California VA Loan Guide covers base-specific information, BAH considerations, and how to maximize your VA benefits in the Golden State.
All Loan Programs
Theós Financial offers conventional, FHA, VA, jumbo, non-QM/USDA, and self-employed mortgage programs across all of California with access to 200+ lenders.
Ready to Buy
in California?
Whether you are buying in the Santa Clarita Valley, Los Angeles, the Bay Area, San Diego, or anywhere in the Golden State, Theós Financial has the expertise and lender access to find you the best mortgage. Based in Valencia with clients statewide.