California has some of the highest conforming loan limits in the country. In 2025, high-cost areas like San Francisco, Los Angeles, and San Diego have limits up to $1,149,825 for a single-family home. Other counties may have lower limits. Anything above the limit for your county requires a jumbo loan with different qualification requirements.

Proposition 13 caps your base property tax rate at 1% of the purchase price, with annual increases limited to 2% regardless of market appreciation. This means your property tax is predictable and grows slowly over time. Local bonds and assessments can add 0.1-0.25% on top of the base rate.

Earthquake insurance is not required by mortgage lenders but is strongly recommended, especially near fault lines in the Bay Area, LA, and along the San Andreas Fault. The California Earthquake Authority offers policies starting around $800/year, but costs depend on your home's age, construction type, and location.

Down payment requirements depend on your loan type and home price. FHA loans require 3.5% down, conventional loans start at 3-5%, and jumbo loans typically require 10-20% down. On a $900,000 California home, that means $31,500 for FHA or $90,000-$180,000 for jumbo financing.

The California Housing Finance Agency (CalHFA) offers several programs including MyHome Assistance with deferred-payment junior loans up to 3.5% of the purchase price. CalHFA also offers the Dream For All Shared Appreciation Loan providing up to 20% of the purchase price for down payment and closing costs.

California's state income tax (up to 13.3%) significantly reduces your net income compared to states with no income tax. Lenders use your gross income for qualification, but your actual monthly budget is smaller. Use the calculator with your after-tax income to see what payment you can truly afford.