Your California Dream Home Starts Here

A home purchase loan is the mortgage you take out to buy a residential property. In California, where the median home price consistently ranks among the highest in the nation, choosing the right purchase loan is one of the most consequential financial decisions you will ever make. At Good Life Lending, Selvin Herrera has spent years guiding buyers through every step of this process, from pre-approval to closing day.

California offers a diverse range of purchase loan options. Conventional loans backed by Fannie Mae and Freddie Mac remain the most popular choice for borrowers with solid credit and a down payment of at least 3 to 5 percent. For 2024, the conforming loan limit in most California counties is $766,550, though high-cost counties like Los Angeles and Orange County carry limits up to $1,149,825. Staying within these limits keeps your interest rate lower and avoids jumbo loan requirements.

First-time homebuyer programs add another layer of opportunity. The California Housing Finance Agency (CalHFA) offers down payment assistance through programs like MyHome and the CalHFA ZIP, which can cover up to 3.5 percent of the purchase price. Many buyers in San Bernardino and Riverside counties qualify for these programs without even realizing it. Our team walks you through every available option so you never leave money on the table.

The pre-approval process is where most successful purchases begin. We review your income, assets, credit history, and debt-to-income ratio to determine exactly how much home you can afford. A strong pre-approval letter signals to sellers and their agents that you are a serious, qualified buyer, which matters enormously in competitive California markets where multiple offers are common.

Property taxes in California are governed by Proposition 13, which caps the base tax rate at 1 percent of the assessed value at the time of purchase, with annual increases limited to 2 percent. However, local bonds and special assessments can push effective rates to 1.1 to 1.3 percent in many Inland Empire communities. We factor these costs into your qualification so there are no surprises after you move in.

Closing costs in California typically run between 2 and 5 percent of the purchase price. These include lender fees, title insurance, escrow charges, and prepaid items like homeowners insurance and property taxes. We negotiate aggressively with vendors on your behalf and explore seller concessions where the market allows.

Whether you are buying a single-family home in Upland, a condo in Pasadena, or a townhouse in Corona, the right loan structure saves you tens of thousands of dollars over the life of the mortgage. That is why working with a local California loan officer who understands regional market dynamics makes all the difference.