California Purchase Home Loans
Purchase your California home with flexible financing options for all borrower types. FHA loans with 3.5% down, VA loans with 0% down for veterans, conventional loans up to $1,249,125, jumbo loans to $6MM, bank statement loans for self-employed, and DSCR loans for investors. Pre-qualification in 24 hours.
Get Pre-QualifiedCalifornia Home Value & Purchase Power Check
Discover your California home purchase power and determine which loan programs you qualify for based on down payment, credit score, and income documentation.
Check Your Purchase PowerConventional Purchase Loans
Loan Amounts: Up to $832,750 (baseline counties) or $1,249,125 (high-cost California counties including most major metro areas). Conventional loans are backed by Fannie Mae and Freddie Mac and offer competitive rates for borrowers with good credit and stable income.
Down Payment: Minimum 3% down for first-time homebuyers, 5% down for repeat buyers on primary residences. 15% down for second homes, 20-25% down for investment properties. Private mortgage insurance (PMI) required when down payment is less than 20%, typically 0.3-1.5% of loan amount annually.
Credit Score: Minimum 620 credit score required. Best rates available for scores 740 and above. Scores 620-679 may have higher rates and stricter underwriting requirements.
Debt-to-Income: Maximum 50% DTI allowed with strong compensating factors (high credit score, significant reserves, low loan-to-value). Standard DTI limit is 43-45% for most borrowers.
FHA Purchase Loans
Loan Limits 2026: $541,287 (baseline) to $1,249,125 (high-cost California counties). FHA loans are insured by the Federal Housing Administration and designed for first-time homebuyers and borrowers with lower credit scores or limited down payment funds.
Down Payment: Minimum 3.5% down with credit scores 580 and above. 10% down required for credit scores 500-579. FHA allows down payment gifts from family members, employers, or charitable organizations. Down payment assistance programs available in many California counties.
Credit Score: Minimum 580 for 3.5% down, minimum 500 for 10% down. FHA is more flexible with credit history including recent bankruptcies (2 years after discharge) and foreclosures (3 years after completion).
Mortgage Insurance: Upfront mortgage insurance premium of 1.75% of loan amount (can be financed into loan). Annual mortgage insurance premium of 0.55-0.85% depending on loan amount and down payment. MIP required for life of loan if down payment is less than 10%.
Debt-to-Income: Maximum 57% DTI allowed with automated underwriting approval. Manual underwriting available for higher DTI with strong compensating factors.
VA Purchase Loans
Eligibility: Available to active duty military, veterans, National Guard and Reserve members, and surviving spouses. Certificate of Eligibility (COE) required, obtained through VA or lender. Minimum service requirements vary by service period and discharge status.
Loan Limits 2026: VA loans match conforming limits by county ($832,750 to $1,249,125 in California). However, borrowers with full entitlement can purchase above county limits by making a 25% down payment on the amount exceeding the limit. No maximum loan amount with full entitlement and adequate down payment.
Down Payment: 0% down payment required for purchases up to county limit with full entitlement. This is the only major loan program offering 100% financing for primary residences. 25% down required on amount exceeding county limit if using remaining entitlement.
Funding Fee: VA funding fee of 2.15-3.3% depending on down payment amount, service type, and whether it's first-time or subsequent VA loan use. Funding fee can be financed into loan amount. Disabled veterans and surviving spouses are exempt from funding fee.
Credit and DTI: No minimum credit score required by VA, but most lenders require 580-620 minimum. DTI up to 60% allowed with strong residual income (cash remaining after all debts and housing expenses). VA emphasizes residual income over DTI ratio.
Jumbo Purchase Loans
Loan Amounts: $300,000 to $6,000,000 for portfolio jumbo loans. Jumbo loans exceed conforming loan limits and are held in portfolio by lenders rather than sold to Fannie Mae or Freddie Mac. This allows for more flexible underwriting on high-value California properties.
Credit Score: Minimum 660-720 depending on loan amount. Higher loan amounts require higher credit scores. Scores 760+ receive best rates and most favorable terms.
Down Payment: 10-20% down for primary residences, 15-25% down for second homes, 20-30% down for investment properties. Exact down payment requirements vary by loan amount and property type.
Debt-to-Income: Maximum 50% DTI allowed with full documentation. This is more flexible than conventional jumbo loans which typically cap at 43-45% DTI. Higher DTI allowed for borrowers with strong credit, significant reserves, and low loan-to-value ratios.
Reserves: 3-12 months reserves required depending on loan amount and property type. Reserves can include checking, savings, retirement accounts, and investment accounts.
Non-QM Purchase Loans
Bank Statement Loans: For self-employed borrowers who cannot document income through tax returns or W-2s. Qualify using 12-24 months personal or business bank statements. Income calculated by averaging deposits and applying expense ratio (typically 25-50% depending on business type). Credit scores 620+, DTI up to 50%, down payment 10-20%.
DSCR Loans (Investment Property): Qualify based on property's rental income rather than personal income. Debt Service Coverage Ratio (DSCR) of 1.0 or higher required (rental income covers mortgage payment). No income documentation required. Credit scores 660+, down payment 20-25%, loan amounts up to $3MM. Ideal for real estate investors purchasing California rental properties.
Asset Qualifier Loans: Qualify using liquid assets (checking, savings, investment accounts) rather than employment income. Lender calculates monthly income by dividing total assets by loan term (typically 360 months). Ideal for retirees, trust fund beneficiaries, or individuals with significant assets but limited W-2 income. Credit scores 680+, down payment 20-30%.
ITIN Loans: For foreign nationals and non-permanent residents without Social Security numbers. Qualify using Individual Taxpayer Identification Number (ITIN). Full documentation of income required through tax returns or employment verification. Credit scores 680+, down payment 20-30%, loan amounts up to $2MM.
Related Mortgage Resources
Mortgage Specialist
Kiyoshi Inui
Licensed Mortgage Loan Originator - NMLS 1173299
Kiyoshi specializes in California purchase home loans for all borrower types including first-time homebuyers, veterans, self-employed individuals, and real estate investors. He analyzes your financial situation, credit profile, and property goals to recommend the optimal loan program and guide you through pre-qualification to closing.
Schedule Consultation with Kiyoshi