2026 loan limits in California
Conforming (Fannie / Freddie)
$806,500 baseline · up to $1,209,750 in high-cost counties
FHA loan limit
$524,225 (baseline counties)
up to $1,209,750 (LA, Orange, Bay Area high-cost counties) in high-cost counties
What homes actually cost
Median home price: ≈ $860,000 statewide
Roughly 16% of California households can afford the state median home. High-balance conforming and CalHFA assistance are essential for most first-time buyers.
Property taxes & insurance
Average effective property tax rate: ≈ 0.71% under Prop 13 (capped 2% annual growth)
Proposition 13 caps assessment growth at 2% per year, so long-time owners pay far less than new buyers on identical homes. Expect your first-year tax bill to be based on your purchase price.
Average homeowners insurance: ≈ $1,850/year statewide; significantly higher in wildfire zones
Wildfire risk is the #1 issue in 2026. In high-risk ZIP codes, expect FAIR Plan + wraparound coverage. Always get a bindable insurance quote before removing loan or appraisal contingencies.
Down-payment assistance in California
CalHFA MyHome Assistance
Who: First-time buyers meeting income limits
What: Deferred-payment junior loan up to 3.5% of purchase price for down payment or closing costs.
CalHFA Dream For All Shared Appreciation
Who: First-generation first-time buyers
What: Up to 20% down-payment assistance; state shares in future appreciation on sale.
GSFA Platinum
Who: Statewide buyers with 640+ FICO
What: Grant of up to 5% of loan amount for down payment / closing costs.
Is buying in California right for you?
Closing customs in California
Escrow companies handle closings. In Northern California the buyer typically pays owner's title; in Southern California the seller typically pays. Always confirm locally.
Frequently asked questions
How much do I need to earn to buy a median-priced home in California?
At the ≈$860K state median with 10% down and 6.75% rate, you generally need around $200,000/year in qualifying income. High-balance conforming keeps rates near baseline up to $1,209,750 in high-cost counties.
Do I need a jumbo loan in California?
Not always. High-cost counties (LA, Orange, SF Bay Area) let you go up to $1,209,750 as high-balance conforming. Jumbo pricing only kicks in above that limit.
What credit score do I need to buy in California?
580+ for FHA, 620+ for Conventional. CalHFA requires 660 (680 for manual underwriting).
Related tools & guides
- The Complete First-Time Homebuyer's Readiness Guide
- FHA vs Conventional: Real cost comparison
- How much home you can actually afford
Run your numbers
Take what you just learned and apply it to your file.