Financing & Loan Options

These terms get used interchangeably, but they're not the same thing, and understanding the difference can affect how seriously sellers take your offer.

• Pre-Qualification: A quick, informal estimate of what you might be able to borrow, based on self-reported financial information. It's a useful starting point but carries little weight with sellers.
• Pre-Approval: A lender's conditional commitment to loan you a specific amount, based on a verified review of your credit, income, assets, and debt. This is what sellers and listing agents actually want to see attached to an offer.

Common Loan Types for California Buyers

• Conventional Loans: Not backed by a government agency; typically require stronger credit and a larger down payment, but offer competitive rates and flexible terms for well-qualified buyers.
• FHA Loans: Backed by the Federal Housing Administration, these allow lower down payments and more flexible credit requirements, making them popular with first-time buyers.
• VA Loans: Available to eligible veterans, active-duty service members, and certain surviving spouses, often with no down payment required and competitive rates.
• Jumbo Loans: For loan amounts that exceed conforming loan limits — common in higher-priced Southern California markets — typically requiring stronger credit and larger reserves.
• First-Time Buyer & Down Payment Assistance Programs: California offers several state and local programs designed to help qualified first-time buyers with down payment and closing cost assistance.

Getting Started

We work with trusted local lending partners who can walk you through which loan type fits your situation best. Getting pre-approved early — before you start touring homes — puts you in the strongest possible position once you find the right property.