California Mortgage Options in 2026 — Complete Guide

Choosing the right mortgage is just as important as choosing the right home. With multiple loan programs available in California, understanding your options is essential to getting the best rate and terms for your situation.

Conventional Loans

Conventional loans are the most common mortgage type in California. They are not backed by a government agency and typically require a minimum credit score of 620 and a down payment of 3 to 20 percent. Borrowers with strong credit and 20 percent down payment avoid private mortgage insurance and get the best rates.

FHA Loans

FHA loans are insured by the Federal Housing Administration and are designed for first-time buyers and those with lower credit scores. FHA loans allow down payments as low as 3.5 percent with a credit score of 580 or higher — an excellent option for California buyers with less saved for a down payment.

VA Loans

VA loans are available to eligible veterans, active-duty service members, and surviving spouses. They offer zero down payment, no private mortgage insurance, and competitive interest rates. If you have served in the US military, a VA loan is one of the best mortgage options available in California.

Jumbo Loans

In many California markets, home prices exceed conventional loan limits, requiring a jumbo loan. Jumbo loans typically require higher credit scores and larger down payments but allow you to finance higher-priced California properties. CA Realty Mortgage works with lenders offering competitive jumbo rates across Sacramento, Folsom, and surrounding areas.

Adjustable Rate Mortgages

Adjustable rate mortgages offer a lower fixed rate for an initial period — typically 5, 7, or 10 years — before adjusting annually. A smart choice for buyers who plan to sell or refinance before the adjustment period begins.

Find the Right Loan With CA Realty Mortgage

CA Realty Mortgage works with top California lenders to match you with the best loan program for your situation. Contact us at 916-667-4791 or email dave@carealtymortgage.com for a free mortgage consultation today.