Buying a home in California comes with unique rules, higher price points, and a few things you won’t encounter in other states. Here’s what you need to know about loan limits, property taxes, down payment assistance, and the California-specific quirks that trip up first-time buyers.
What Are the California Loan Limits?
Loan limits vary by county in California — and they’re significantly higher here than in most of the country. For 2025:
- Standard conforming limit: $806,550 (most rural and inland counties)
- High balance conforming: Up to $1,209,750 (Orange County, Los Angeles, San Diego, San Francisco, Santa Clara, San Mateo, Marin, and other high-cost areas)
- FHA loan limits: Vary by county, generally ranging from $524,225 to $1,209,750
- VA loan limits: No limit for eligible veterans with full entitlement
If you’re buying in Orange County, Los Angeles, or the Bay Area, you’ll likely qualify for high-balance loan amounts that exceed the standard conforming limit. I’ll confirm the exact limit for your target county.
What Are the Best Down Payment Assistance Programs in California?
California has some of the most robust down payment assistance programs in the country. Key options include:
- CalHFA (California Housing Finance Agency) — offers below-market-rate first mortgages plus MyHome Assistance, a deferred-payment junior loan for down payment and closing costs
- CalHFA Zero Interest Program (ZIP) — a separate second mortgage with zero interest that helps with down payment
- Local county and city programs — Orange County, Los Angeles, San Diego, and other counties have their own first-time buyer assistance programs
- FHA with DPA — FHA’s 3.5% down requirement can be combined with assistance programs so your actual out-of-pocket is minimal
Programs change frequently, and eligibility depends on income, property location, and loan type. I stay current on available programs and will match you with the best combination for your situation.
How Much Are Supplemental Property Taxes?
In many California communities — especially newer developments and master-planned communities — you may have supplemental or special district taxes on top of your base property tax. These can include:
- Mello-Roos taxes (Community Facilities District assessments)
- School district bond taxes
- Community services district assessments
- HOA fees (not a tax, but part of your monthly cost)
These can add $200 to $800+ per month to your housing costs, depending on the area and development. Always ask about supplemental taxes before making an offer — they significantly affect your total monthly payment. I help every client understand the full tax picture before they commit.
Can I Buy an ADU Property with FHA?
FHA loans can potentially finance properties with Accessory Dwelling Units (ADUs), but there are specific requirements. The property must be a single-unit primary residence with the ADU, and the unit must meet FHA property standards. California has been expanding ADU-friendly legislation in recent years, making this an increasingly viable option.
If you’re considering a property with an ADU — or building one — I’ll help you determine whether FHA, conventional, or another loan program is the best fit for your situation.
What Is Mello-Roos?
Mello-Roos is a California tax assessment levied on properties within Community Facilities Districts (CFDs). When a developer builds a new community, they often finance infrastructure (roads, sewers, schools, parks) through bonds. Homeowners in that district pay a special tax to service those bonds.
Mello-Roos taxes can range from a few hundred to over a thousand dollars per month and typically last for 20 to 40 years. They’re separate from your base property tax and are not deductible on federal tax returns (unlike your regular property tax). Always ask: “Is this property in a Mello-Roos district?”
How Do California Property Taxes Work After a Purchase?
Under Proposition 13, your base property tax is assessed at 1% of the purchase price, with annual increases limited to 2% per year. When you buy a home, your property tax is reassessed to the new purchase price — so your tax bill may be different from what the previous owner paid.
Additionally, supplemental property taxes are prorated for the partial year between your purchase date and the next tax cycle. This means you may receive a supplemental tax bill in your first year that covers the period from your closing date to the end of the fiscal year.
I always explain the full property tax picture so there are no surprises after closing.
Dynamic Lending for Dynamic Living
California is a dynamic market — and buying here requires a loan officer who understands its unique rules, programs, and pitfalls. With 28 years of experience and licensing across six states, I help California buyers navigate every detail with clarity and confidence.
Buying in California? Let me walk you through the details.