First-Time Home Buyer Loans in California

First-Time Home Buyer Loans in California: Your Complete Financing Guide

Financing is one of the biggest hurdles for first-time homebuyers in California, but a variety of loan programs can make the process easier. Here’s an in-depth look at your options in 2025 and how to choose the right loan for your needs.

FHA Loans

• Low Down Payment: Only 3.5% down for buyers with a credit score of 580 or higher.

• Flexible Credit Requirements: Easier to qualify compared to conventional loans.

• High Loan Limits: Adjusted for high-cost areas like Los Angeles, making them accessible for local buyers.

• Mortgage Insurance: Required for the life of the loan, but can be refinanced later.

VA Loans

• Zero Down Payment: No down payment required for eligible veterans and service members.

• No PMI: No private mortgage insurance, saving you money each month.

• Competitive Rates: Often lower than conventional loans.

• Flexible Requirements: Easier qualification for those who serve or have served.

CalHFA Loans

• State-Sponsored Programs: Designed specifically for first-time buyers.

• Down Payment Assistance: Grants and silent second mortgages to cover down payments and closing costs.

• Income Limits: Generous limits to accommodate California’s high cost of living.

• Homebuyer Education: Required to help you understand the process and responsibilities.

Conventional Loans

• 5% Down Payment: Some programs allow for as little as 3% down.

• No Mortgage Insurance with 20% Down: Save on monthly costs if you can put more down.

• Flexible Terms: Choose from 15, 20, or 30-year fixed rates.

USDA Loans

• Zero Down Payment: Available in select rural areas of Los Angeles County.

• Low Rates: Competitive interest rates and flexible credit requirements.

How to Choose the Right Loan

• Assess Your Finances: Consider your income, credit score, and savings.

• Compare Programs: Look at down payment requirements, interest rates, and eligibility.

• Get Pre-Approved: Work with a lender to get pre-approved and strengthen your offer.

• Consult a Professional: A real estate agent or mortgage broker can help you navigate your options.

The Application Process

• Gather financial documents, including pay stubs, tax returns, and bank statements.

• Complete a loan application and submit to your lender.

• Work with your agent to find the right home and make an offer.

• Close on your new home and move in!

The Bottom Line

With the right loan program, homeownership in California is within reach—even for first-time buyers.

Explore your financing options by visiting our website’s resource center or contact the RIM Property Group to discuss which loan programs are right for you. We’ll help you find the perfect fit!