Fourteen programs. One right answer.
Most California borrowers qualify for three or four programs and pick the wrong one — usually by comparing month-one payments instead of total cost. Set your three numbers here and I'll tell you which program usually wins, and what to check before you commit.
With this credit and down payment, conventional typically wins on total cost — the PMI cancels at 20% equity rather than following you for the life of the loan.
Why the program matters more than the rate
Borrowers shop rates. Rates vary by fractions. Program choice varies by tens of thousands.
Consider two California buyers with identical credit and identical down payments. One takes an FHA loan, the other conventional. Their rates might differ by a quarter point. But the FHA borrower pays mortgage insurance for the life of the loan below 10% down, while the conventional borrower's PMI cancels once they reach 20% equity — which California appreciation often delivers within a few years.
Over a decade of ownership that single structural difference outweighs any rate negotiation either of them could have won. And it's decided at application, not at lock.
The same logic runs through every comparison on this page. A veteran choosing conventional over VA gives up zero-down and no mortgage insurance. A self-employed borrower accepting a decline on tax returns misses bank statement programs entirely. A buyer at $1.1 million in Los Angeles accepting jumbo terms may qualify for high-balance conforming instead.
The question worth asking any lender: "which programs do I qualify for, and what does each cost over the years I actually plan to own this home?" If they only quote you one program and a monthly payment, you're not getting a comparison — you're getting a pitch.
Buying a home in California
Six programs, each solving a different problem. The honest requirements and downsides are in each guide.
FHA Loans
The most accessible path for first-time buyers and anyone rebuilding credit. Annual mortgage insurance is 0.55% — a figure most competitor sites still quote wrong at 0.85%. The catch: below 10% down it never cancels.
FHA loans in California →VA Loans
If you're eligible this is almost always the best loan available anywhere. Zero down, no mortgage insurance, and with full entitlement no loan limit at all since 2020 — a veteran can buy above $1.2M in California with nothing down.
VA loans in California →Conventional Loans
Usually cheapest above 680 credit, and the reason is structural: PMI cancels at 20% equity, and appreciation counts toward it. HomeReady and Home Possible allow 3% down for eligible first-time buyers.
Conventional loans in California →Jumbo Loans
Common across coastal California even for ordinary homes. But check the tier first — between $832,750 and $1,249,125 in high-cost counties you may qualify for high-balance conforming, which is cheaper.
Jumbo loans in California →USDA Loans
Zero down with a lower annual fee than FHA. Two hard gates — the property address and your household income. "Rural" misleads badly: plenty of ordinary suburbs with a 40-minute commute qualify.
USDA loans in California →Non-QM Loans
For self-employed borrowers whose write-offs suppress taxable income, and investors whose portfolios count against DTI. Qualify on deposits, rent, or assets. Ask about prepayment penalties on every quote.
Non-QM loans in California →Already own a California home
Five refinance routes. All of them come down to one number — your break-even month.
Rate & Term Refinance
Lower your rate or change your term. Earns the sharpest pricing of any refinance because no equity is extracted. Watch the term trap — resetting to a fresh 30 years can raise lifetime interest even at a better rate.
Rate & term refinance →Cash-Out Refinance
Convert equity into a lump sum. But it replaces your entire mortgage at today's rate — if you're holding 3%, a HELOC is almost always cheaper. The page runs both comparisons honestly.
Cash-out refinance →FHA Streamline Refi
For existing FHA borrowers only. Your home's value is irrelevant — no appraisal means no equity requirement. It cannot remove your mortgage insurance, though; only a conventional refinance does that.
FHA streamline refinance →VA IRRRL
The simplest refinance in American lending — no appraisal, no income verification, no new Certificate of Eligibility. If your servicer declined you on credit, that was their overlay, not a VA rule.
VA IRRRL refinance →Conventional Refinance
The only way out of FHA mortgage insurance if you put down under 10%. Worth $150–$250 a month for many borrowers — unless you're holding a 3% rate, in which case the math says stay put.
Conventional refinance →All Refinance Options
The hub page with a live break-even calculator. Set your rate, balance, and closing costs and see the month you come out ahead — or that you never do.
All refinance options →Specialty programs
HELOC
A revolving credit line secured by your home that leaves your first mortgage completely untouched. For anyone holding a low pandemic-era rate who needs equity, this is usually the right instrument rather than a cash-out refinance. Draw only what you need; pay interest only on what you draw.
HELOC in California →ARM Loans
Fixed for five, seven, or ten years, then adjusting within caps written into your note. On large California balances the initial discount is real money — but see the ceiling before the discount. Your worst-case payment is knowable on day one, and most quotes never show it.
ARM loans in California →California loan program comparison
Corrected 2026 figures. Note that several of the numbers you'll find on competing sites are still from 2023 or 2024.
| Program | Min. down | Min. credit | Mortgage insurance | Does it cancel? | 2026 CA limit | Best for |
|---|---|---|---|---|---|---|
| Conventional | 3% first-time / 5% | 620 | PMI below 20% equity | Yes — at 20% equity | $832,750 / $1,249,125 high-cost | 680+ credit, 5%+ down |
| FHA | 3.5% (10% at 500–579) | 580 | 1.75% upfront + 0.55%/yr | No, below 10% down | $541,287 – $1,249,125 | Lower credit, minimal cash |
| VA | $0 | No VA minimum (lenders ~620) | None, ever | N/A — none charged | No limit with full entitlement | Eligible veterans and service members |
| USDA | $0 | No USDA minimum (lenders ~640) | 1% upfront + 0.35%/yr | No — life of loan | Income and area limits apply | Eligible areas, income under 115% AMI |
| Jumbo | 10–20% | 700+ | Generally none | N/A — none charged | Above county conforming limit | High-value purchases, strong reserves |
| Non-QM | 15–30% | 620–680 | Varies by program | Varies | Lender-specific, often to $5M | Self-employed, investors, complex income |
The 2026 conforming limits are $832,750 baseline and $1,249,125 in high-cost counties. If you see $766,550 or $1,149,825 quoted anywhere — including on other pages of this site until recently — those are 2024 figures and they're wrong. Each of California's 58 counties has its own specific limit, and many fall between the baseline and ceiling.
Four factors that decide your program
1. Your credit score, and where the tiers fall
Credit pricing moves in defined steps, not a smooth curve — commonly at 620, 660, 680, 700, 720, 740, and 760. Being two points below a threshold costs real money, and it's often fixable in a single billing cycle by paying down a revolving balance or correcting a reporting error.
Above 740, conventional generally wins. Between 620 and 700, FHA frequently beats it — because FHA's mortgage insurance is a flat rate regardless of score while conventional PMI gets progressively more expensive as your score drops. Below 620, FHA and VA are your realistic paths.
Ask before you lock: "how far am I from the next pricing tier, and what would it take to get there?"
2. Your down payment — and where it comes from
With 20% or more, conventional is very attractive because you avoid mortgage insurance entirely. Between 10% and 19% you'll pay PMI but it cancels later. Between 3% and 9%, the FHA-versus-conventional comparison genuinely depends on your credit. At zero, VA and USDA are the only routes — and both are excellent if you qualify.
The source matters as much as the amount. Gift funds from family are permitted on most programs. CalHFA and various county programs offer down payment assistance to eligible California buyers, and availability changes — worth asking rather than assuming.
3. Your county's conforming limit
This is the factor California buyers most often miss. The 2026 limit runs from $832,750 to $1,249,125 depending on your county, and it determines whether you're in standard conforming, high-balance conforming, or true jumbo territory — three tiers with genuinely different pricing, down payment expectations, and reserve requirements.
Sometimes adjusting your down payment slightly to bring the loan under your county's ceiling saves more than the extra cash was worth. Confirm your county's exact figure before you write an offer.
4. How long you'll actually keep the loan
This one determines more than people expect. If you'll sell or refinance within five to seven years, an ARM discount may be worth taking, and FHA's permanent mortgage insurance matters less. If you're staying twenty years, that same insurance becomes the dominant cost and a fixed rate is worth its premium.
Be honest with yourself here rather than optimistic. Plans change more often than borrowers expect, and an ARM that only works if you can refinance later is riskier than it looks.
Compare total cost over your expected holding period — not the month-one payment. That single discipline is what separates borrowers who choose well from borrowers who choose the lowest number on a quote sheet. It's also the comparison most lenders won't run unless you ask.
Fourteen programs, one honest comparison.
I'm Jonathan Boukarim, an independent licensed mortgage broker based in San Diego. A bank shows you the bank's product. I run your file against every program you qualify for and show you what each actually costs over the years you plan to own the home.
When you call (619) 436-5578, you get me directly — not a queue. And you'll get the honest answer even when it costs me the transaction: that a HELOC beats the cash-out you asked about, that you should call your servicer about PMI cancellation instead of refinancing, or that waiting three months to cross a credit tier is worth more than anything I could negotiate today.
Licensed across all 58 California counties
Based in San Diego, working statewide. Local pages for the markets where I'm most active.
Buying somewhere else in California? Call (619) 436-5578 — I'm licensed statewide.
California Loan Program FAQs
Which California loan program is cheapest for me?+
It depends on your credit, down payment, and how long you'll keep the home. VA wins outright if you're eligible. USDA wins if your address and income qualify. Above 680 credit with 5%+ down, conventional usually wins because the PMI cancels. Between 620 and 680, FHA often wins because its insurance is a flat rate that doesn't worsen with your score.
Compare total cost over your expected holding period rather than the month-one payment — that's where most borrowers go wrong.
What are the 2026 California conforming loan limits?+
$832,750 baseline in most counties, up to $1,249,125 in high-cost counties including Los Angeles, Orange, San Francisco, San Mateo, Santa Clara, Marin, Alameda, and Contra Costa. Several counties fall between those figures with their own specific limits.
If you see $766,550 or $1,149,825 anywhere, those are 2024 figures. Worth checking the date on any source quoting loan limits.
Can I qualify for more than one program?+
Almost certainly — most California borrowers qualify for three or four. A veteran with good credit and 10% saved could reasonably use VA, conventional, or FHA. Which one is cheapest depends entirely on the specifics, and the answer isn't always the one that seems obvious.
That's the actual value of comparing: not finding the one program you're eligible for, but choosing correctly among several.
What credit score do I need?+
580 opens FHA at 3.5% down, and 500–579 works with 10% down at some lenders. Conventional generally starts at 620, jumbo at 700. VA and USDA set no program minimum at all — the floors you encounter there are lender overlays.
That distinction matters: if a lender declined you at 610 on a VA loan, that was their policy, not the VA's. Another lender may approve the same file.
How much down payment do I need in California?+
Less than most people assume. VA and USDA offer $0 down for those who qualify. FHA needs 3.5%. Conventional starts at 3% for eligible first-time buyers through HomeReady or Home Possible, and 5% otherwise. Jumbo typically wants 10–20%.
Gift funds from family are permitted on most programs, and California operates down payment assistance programs for eligible buyers. Program availability and funding change, so confirm current status rather than planning around what a website says.
Should I choose an ARM or a fixed rate?+
It's a bet on your own timeline more than on rates. If you'll genuinely sell or refinance inside the fixed period, the discount is free money. If you might stay, the risk is real.
Before deciding, ask for two things: the actual rate spread in dollars per month, and your worst-case payment at the lifetime cap. Both are knowable today. If the spread is thin or the ceiling would strain you, take the fixed. See ARM loans.
I'm self-employed. Which program should I look at?+
Start with conventional — if your tax returns support the income, it's the cheapest route. Where legitimate write-offs suppress your taxable income below what you actually earn, bank statement programs qualify you on 12–24 months of deposits instead.
The detail that matters most is the expense factor a lender applies to those deposits. Some assume a flat 50%; others accept a CPA letter documenting your actual ratio, which can change your qualifying income dramatically.
How long does approval take?+
Pre-approval usually takes a few business days once your documentation is in. Purchases typically close in 30 to 45 days. Refinances run three to five weeks. Streamline programs — FHA Streamline and VA IRRRL — often close in two to three weeks because they skip the appraisal. USDA runs slightly longer due to an additional agency review step.
Document completeness is the single biggest variable in all of these.
How is a mortgage broker paid?+
Broker compensation is either lender-paid or borrower-paid, it's set before your loan is originated, and it's disclosed in writing on the Loan Estimate you receive — as required by federal law. There's nothing you discover at closing.
Be cautious of anyone who tells you broker services "cost nothing." That's an oversimplification. Ask directly how a specific loan is structured and what the compensation is; a straight answer is a reasonable expectation.
Is mortgage interest deductible in California?+
Mortgage interest is generally deductible if you itemize, and federal and California limits differ. But deduction limits, thresholds, and the treatment of mortgage insurance change with tax legislation and depend on your individual circumstances.
I'm a mortgage broker, not a tax professional — confirm your specific situation with a CPA rather than relying on general guidance from any mortgage website, including this one.
How do I verify you're licensed?+
Look up NMLS 1892952 on the NMLS Consumer Access database — free, public, and it shows license status and history. Do this for any mortgage professional you're considering, not just me.
Get every program you qualify for, compared
Tell me your credit range, down payment, and county. I'll show you which programs you're eligible for, what each costs over the years you plan to own, and which one I'd actually recommend.
Jonathan Boukarim · Licensed California Mortgage Broker · NMLS 1892952 · (619) 436-55783111 Camino Del Rio N, Suite 905, San Diego, CA 92108
Talk to a Local Mortgage Expert
Every program you qualify for, compared on total cost.