Whether you are a first-time buyer or coming back to the market, this hub will help you understand the journey from start to finish, in plain language.
To buy a home in California, you generally need to get pre-approved, save a down payment (often 3%–5%) plus closing costs (about 2%–5%), have decent credit (around 620+), and pick the loan type that fits you. California also offers down payment help and has unique features like Prop 13 property taxes, escrow companies, and a challenging homeowners insurance market. The process from offer to keys usually takes 30–45 days.
What this means
Buying a home comes down to four big questions:
- How much can I afford? Based on your income, debts, and savings.
- How will I pay for it? Down payment, loan type, and any assistance.
- What does the process look like? From pre-approval to closing.
- What is special about California? Taxes, escrow, and insurance.
How it works (the journey)
- 1Step 1 — Get ready Check your credit, savings, and debts. Then get pre-approved so you know your real budget. See What Credit Score Do I Need and First-Time Homebuyer.
- 2Step 2 — Understand the money Learn how much cash you need: the down payment plus closing costs. See Down Payment Options and Closing Costs Explained.
- 3Step 3 — Choose your loan Pick the loan that fits your credit and goals: FHA, conventional, VA, USDA, or jumbo. See FHA and Conventional.
- 4Step 4 — Look for help Check California assistance programs that can lower your upfront cash. See Down Payment Assistance (DPA).
- 5Step 5 — Go through the process Make an offer, open escrow, complete inspections and the appraisal, finish underwriting, and close. See Homebuying Steps & Timeline.
What makes California different
| Feature | Why it matters |
|---|---|
| Prop 13 property taxes | Base tax ~1% of price, plus local items (~1.1%–1.25% effective) |
| Supplemental tax bill | A one-time extra bill after you buy |
| Escrow companies | A neutral company handles closing (not attorneys) |
| High home prices | Many buyers need high-balance or jumbo loans |
| Insurance market | Coverage can be harder and costlier, especially in wildfire areas |
| Down payment help | CalHFA and other programs are available |
Requirements (at a glance)
| Item | Typical guideline |
|---|---|
| Credit score | ~620+ conventional, ~580+ FHA |
| Down payment | 3%–5% (or 0% for VA/USDA) |
| Closing costs | About 2%–5% of the price |
| Steady income | Usually 2 years of history |
| Homeowners insurance | Required before closing |
Benefits of buying
Things to watch
What it looks like in practice
Example is for learning only. Your path depends on your finances and goals.
Common mistakes
This page is for education only. It is not a loan offer or a promise of approval, rates, or terms. Qualification depends on your individual circumstances. Equal Housing Opportunity · NMLS #362311 · CA DRE #01871814.
