Mortgage FAQ
Answers to the most common California mortgage questions. Can't find what you're looking for? Call (888) 703-1840 — we're here 7 days a week.
Getting Started
How much down payment do I need to buy a home in California?
It depends on the loan program. VA loans require zero down payment. FHA loans need 3.5% with a 580+ credit score. Conventional loans start at 3% for first-time buyers. USDA loans offer zero down in eligible rural areas. Down payment assistance programs like CalHFA can help cover some or all of the down payment. For a $750,000 California home, that ranges from $0 (VA) to $150,000 (20% conventional).
What credit score do I need for a mortgage in California?
Minimum credit scores vary by program: FHA accepts 580 (500 with 10% down), conventional requires 620, VA has no VA-set minimum (most lenders require 620), jumbo typically needs 700+, and hard money loans have no minimum FICO requirement. Higher scores get better rates — the difference between 660 and 760 can be 0.75% or more in rate, which translates to hundreds of dollars per month on a California-sized mortgage.
How long does it take to get a mortgage in California?
Timeline varies by loan type. Hard money can close in as little as 24 hours for business purposes. Conventional and FHA loans typically take 30-45 days from application to closing. VA loans average 30-45 days. Jumbo loans may take 30-60 days. Pre-approval can be completed in 24 hours with Save Financial.
What is the conforming loan limit in California for 2025?
The 2025 conforming loan limit in California's high-cost counties is $1,209,750 for a single-family home. Multi-unit limits are higher: $1,548,975 for duplexes, $1,872,225 for triplexes, and $2,326,875 for four-unit properties. Loans above these limits require jumbo financing.
What is mortgage pre-approval and do I need it?
Pre-approval is a formal lender review of your credit, income, and assets that results in a conditional commitment to lend a specific amount. In California's competitive markets, pre-approval is essentially required — most sellers won't consider offers without a pre-approval letter. Save Financial completes most pre-approvals within 24 hours.
Loan Types & Programs
What is the difference between FHA and conventional loans?
FHA loans are government-insured with lower credit requirements (580 minimum), 3.5% down, but permanent mortgage insurance. Conventional loans need 620+ credit, offer removable PMI that cancels at 80% LTV, and allow second homes and investment properties. For California buyers with 700+ credit, conventional is usually the better long-term value. See our full FHA vs. Conventional comparison at /compare/fha-vs-conventional/.
What is a jumbo loan and when do I need one in California?
A jumbo loan exceeds the conforming limit of $1,209,750. In California's coastal markets — Newport Beach, San Francisco, Beverly Hills, Palo Alto — jumbo is standard. Requirements include 700+ credit, 10-20% down, and significant cash reserves. Jumbo rates for qualified borrowers often match conforming rates in California.
What are bank statement loans?
Bank statement loans qualify self-employed borrowers using 12-24 months of bank deposits instead of tax returns. If your business generates $25,000/month in deposits but your tax return shows $10,000 due to deductions, bank statement loans recognize the higher amount. Rates are 0.75-2% above conventional but unlock significantly more buying power for self-employed Californians.
What is a DSCR loan and how does it work?
DSCR (Debt Service Coverage Ratio) loans qualify investors based on the property's rental income vs. mortgage payment — no personal income verification needed. A DSCR of 1.0 means rent covers the payment exactly. DSCR loans have no property limit (unlike conventional's 10-property cap), allow LLC ownership, and are ideal for building California rental portfolios.
What is a hard money loan?
Hard money is a short-term, asset-based loan secured by real estate rather than the borrower's credit. Save Financial's hard money programs offer approval in as little as 24 hours, no minimum FICO, no income verification, and up to 75% LTV. Hard money is used for fix-and-flips, bridge financing, auction purchases, and situations where traditional lending is too slow or restrictive.
Can I get a mortgage with no income or no job?
Yes. Save Financial offers a no-income mortgage program that qualifies borrowers on assets and credit alone — no employment, income documentation, tax returns, or pay stubs required. Requirements include 680+ credit, significant liquid assets, and 40% down payment. Loan amounts up to $3 million for primary residences, second homes, and investment properties.
What is a VA loan and who qualifies?
VA loans are guaranteed by the Department of Veterans Affairs — zero down payment, no PMI, competitive rates, and no loan limit with full entitlement. Active duty, veterans, National Guard, Reserve members, and surviving spouses qualify. In California, VA is often the single best mortgage product available.
Self-Employed Borrowers
Can I get a mortgage if I am self-employed?
Absolutely. Save Financial specializes in self-employed lending. Options include bank statement loans (12-24 months deposits), P&L loans (CPA-prepared profit & loss), full-documentation conventional (if your tax returns support it), asset-depletion programs, and 1099 income programs. The right choice depends on the gap between your actual cash flow and your reported tax income.
Why does my tax return hurt my mortgage application?
Tax deductions reduce your adjusted gross income (AGI), which is what traditional lenders use to qualify you. A self-employed person earning $300,000 who writes off $150,000 in business expenses shows $150,000 in qualifying income. Bank statement loans solve this by using actual deposits instead of tax return income.
Costs & Process
How much are closing costs in California?
California closing costs typically range from 2-5% of the purchase price. On a $750,000 home, expect $15,000-$37,500 in total costs including lender fees, title insurance, escrow, prepaid taxes/insurance, and recording fees. Some costs are negotiable — Save Financial helps clients minimize closing expenses.
What is PMI and how do I get rid of it?
Private Mortgage Insurance (PMI) is required on conventional loans with less than 20% down. It costs 0.2-1.5% of the loan annually. PMI automatically cancels at 78% LTV or can be removed by request at 80% LTV. FHA mortgage insurance (MIP) is different — it lasts for the life of the loan in most cases and can only be removed by refinancing into a conventional loan.
Does Save Financial charge for consultations?
No. All consultations, pre-approvals, and rate comparisons are free with no obligation and no hard credit pull for initial conversations. We earn fees only when we successfully close a loan. Call (888) 703-1840 or apply online any time.
What is Save Financial's $500 price guarantee?
If Save Financial cannot beat another lender's written offer for the same loan product, we will pay you $500. This guarantee reflects our confidence in the competitive rates we secure through our network of 20+ wholesale lenders.
Investing
How many investment properties can I finance?
With conventional loans, you're limited to 10 financed properties total. With DSCR loans, there is no limit — each property is evaluated on its own rental income. This is why DSCR lending has become the primary tool for California portfolio investors scaling beyond conventional limits.
Can I buy investment property in an LLC?
With DSCR loans, yes — most programs allow LLC, corporation, or trust ownership. Conventional loans require personal-name ownership. LLC ownership provides liability protection that many California investors value.
Still Have Questions?
Talk to a mortgage expert at Save Financial. Free consultation, no obligation, no hard credit pull. We're here 7 days a week, 9AM–8PM.