Overview: California Purchase Loan Programs
California homebuyers have access to more mortgage programs than any other state, ranging from zero-down VA loans to multi-million-dollar jumbo financing. The right program depends on your military status, credit score, down payment savings, income documentation, and the property type you're purchasing. Below is a comprehensive overview of every purchase loan program available through California-licensed mortgage brokers, organized by category.
The conforming loan limit for all California counties is $1,249,125 for single-family homes (2026), set by the Federal Housing Finance Agency. This is the highest tier nationally because every California county qualifies as a high-cost area. Loans at or below this limit can use conventional (Fannie Mae/Freddie Mac) or government-backed (FHA, VA, USDA) programs. Loans above this limit require jumbo financing.
Government-Backed Purchase Programs
FHA Loans are insured by the Federal Housing Administration and require just 3.5% down with a 580 credit score. The California FHA loan limit is $1,249,125. FHA loans are popular with first-time buyers and those rebuilding credit. The trade-off is permanent mortgage insurance (0.55% annually) that does not cancel, unlike conventional PMI. Full FHA guide →
VA Loans offer zero down payment and no mortgage insurance for eligible veterans, active-duty service members, and surviving spouses. VA loans have no borrower-imposed loan limit for those with full entitlement, making them the best option for military-connected buyers at any price point. The VA funding fee (2.15% first use) is waived for veterans with service-connected disability. Full VA guide →
USDA Loans provide zero down payment for homes in designated rural areas of California, including parts of the Central Valley, Inland Empire, and northern counties. Income limits apply (115% of area median income). USDA has the lowest mortgage insurance cost of any government program (0.35% annually). Full USDA guide →
Conventional Purchase Programs
Conventional Loans backed by Fannie Mae and Freddie Mac start at 3% down for first-time buyers (HomeReady/HomePossible programs with income limits) or 5% for repeat buyers. The key advantage: PMI cancels at 20% equity, unlike FHA's permanent insurance. Best rates require 740+ credit. The $1,249,125 conforming limit covers the vast majority of California purchases. Full conventional guide →
Jumbo Loans finance purchases above the $1,249,125 conforming limit. Down payments start at 10% with some programs, and rates are competitive with conforming for well-qualified borrowers (740+ credit, strong reserves). Interest-only and ARM options provide payment flexibility. Full jumbo guide →
Specialty Purchase Programs
Bank Statement Loans serve self-employed buyers who qualify on 12-24 months of bank deposits rather than tax returns. Minimum 660 credit, 10% down. Loan amounts to $3M. Guide →
DSCR Loans qualify investment property purchases on rental income, not personal income. No tax returns, no W-2s. LLC ownership allowed. Guide →
ITIN Loans serve California residents who file taxes with an Individual Taxpayer Identification Number. 15-20% down, 660+ credit. Guide →
Foreign National Loans serve non-U.S. citizens purchasing California property. No SSN or U.S. credit required. 25-35% down. Guide →
How to Choose the Right Purchase Loan
Start with your eligibility: if you have qualifying military service, VA is almost always the best choice (zero down, no PMI, lowest rates). If you're buying in a USDA-eligible rural area, USDA offers zero down with the lowest insurance cost. For everyone else, the decision comes down to credit score and down payment: below 680 credit or under 5% down, FHA is typically the path. Above 720 credit with 5%+ down, conventional wins on total cost. Above the conforming limit, jumbo is the only option. Self-employed borrowers with tax deductions should explore bank statement programs alongside conventional.
A licensed mortgage broker can run all eligible scenarios simultaneously and show you the exact monthly payment, total cost, and qualification requirements for each program. This comparison shopping is free and takes about 15 minutes. Our recommended broker, Save Financial, Inc. (NMLS #377740), works with 20+ wholesale lenders and 35+ programs to find the best fit.
Frequently Asked Questions — Home Purchase Loans
What is a home purchase loan in California?
A home purchase loan is any mortgage used to buy rather than refinance. The main California options are conventional at 3-20% down, FHA at 3.5% down with a 580 credit score, VA at zero down for eligible veterans, and jumbo above the county conforming limit — $832,750 in most California counties for 2026 and $1,249,125 in high-cost counties. Closing typically takes 30-45 days.
What credit score do I need for home purchase loans?
Most home purchase loan programs in California look for 620+. Credit tends to affect your pricing more than your eligibility — a stronger score usually shows up as a lower rate rather than a different answer on whether you qualify.
How much down payment do I need?
A home purchase loan in California typically requires 3-20% down. The exact figure moves with your credit profile, occupancy and property type — stronger files land at the low end of that range.
How long does closing take?
A home purchase loan in California generally closes in 30-45 days. Appraisal turn times and how quickly you return requested documents are the two things that move that timeline most.
Can I use this program for an investment property?
A home purchase loan is available for primary, second home or investment. Occupancy affects both pricing and down payment, so confirm the intended use up front — it changes the terms you are quoted.
Are rates higher for home purchase loans?
Home purchase loan rates run at or close to conventional market rates, since these are agency-eligible loans. Your specific number depends on credit, down payment, occupancy and the day you lock.
Do I need to verify my income?
For a home purchase loan, income is full documentation, or an alternative program if you are self-employed. This is the main way the program differs from a standard conventional loan, and it is usually the reason borrowers choose it.
Can I refinance later into a different program?
Yes. With a home purchase loan the usual path is to refinance once you build equity or rates improve. Nothing locks you in — plan the exit when you take the loan rather than after.
What documents do I need to apply?
For a home purchase loan you will need a government ID, credit authorization and property details, plus a purchase contract, two months of asset statements and two years of income documents.
How do I get started?
Call (888) 703-1840 for a free home purchase loan consultation, or use the form on this page. Pre-approval usually takes 1-3 business days, and there is no cost and no hard credit pull to find out what you qualify for.
Related Loan Programs
Last updated: July 2026. Sources: Federal Housing Finance Agency (FHFA), U.S. Department of Housing and Urban Development (HUD), Consumer Financial Protection Bureau (CFPB), California Department of Real Estate, California Association of Realtors. All loans subject to credit approval. Rates and terms subject to change.
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