State Buyer Guide

First-Time Home Buyer Guide
for California

Down payment assistance, California housing programs, closing cost estimates, and what to know before buying — including from FSBO sellers.

Step 1 — Do This First

Get Mortgage Pre-Approval Today

FSBO sellers take pre-approved buyers seriously. LendingTree lets you compare rates from 200+ lenders in minutes — for free.

$1–$70/lead commission earned No credit score impact 3-minute process
Compare Mortgage Rates Free →

Affiliate link — we earn a commission at no cost to you. Disclosure

$785,000
Avg Home Price
0.73%
Property Tax Rate
~$19,625
Est. Closing Costs
~0.11% state + county/city add-ons
Transfer Tax

California Housing Finance Agency Programs

The California Housing Finance Agency (CalHFA) is your primary source for below-market mortgage rates and down payment assistance in California. Programs are available through approved lenders — not directly through the HFA.

CalHFA MyHome Assistance Program
Up to 3.5% of purchase price — deferred until sale or refinance

Deferred-payment junior loan for down payment and/or closing costs.

Income limit: $180,000 (varies by county and household size)
Learn more at California Housing Finance Agency (CalHFA)
CalHFA Dream For All
Up to 20% of purchase price — subject to program availability

Shared appreciation loan providing substantial down payment help.

Income limit: $180,000 (varies by county)
Learn more at California Housing Finance Agency (CalHFA)
High Value — $240/funded loan

Credible

Personalized mortgage rates in 3 minutes

Compare Rates

See real rates from multiple lenders with one soft credit pull. Credible pays up to $240 per funded loan — which means they have every reason to find you the best rate.

Compare Mortgage Rates

Closing Costs in California

Typical Closing Cost Range
2.5% of purchase price

On a $785,000 home: approximately $19,625

Transfer Tax
~0.11% state + county/city add-ons

California charges a documentary transfer tax of $1.10 per $1,000 (0.11%) at the county level. Many cities add their own tax — Los Angeles adds 0.45%, for example.

Attorney at Closing?
No — title company state

California uses escrow and title companies for closings. An attorney is not required, but many buyers in complex transactions hire one independently.

Key Tips for Buying in California

  • Prop 13 caps property tax increases at 2%/year once you own — your tax basis resets to purchase price when you buy.
  • Earthquake risk is significant in most of California — seriously consider earthquake insurance, which is not included in standard homeowners policies.
  • A Natural Hazard Disclosure (NHD) report is legally required — read it carefully for fire, flood, and fault zone designations.
  • Get pre-approved (not just pre-qualified) before touring homes in competitive markets.
Home Inspection

HomeAdvisor

Find licensed home inspectors near you

HomeAdvisor instantly matches you with licensed, background-checked home inspectors in your area. Read real reviews, compare quotes, and book online.

Find an Inspector

Legal Help for California Buyers

While California doesn't require an attorney at closing, FSBO buyers should strongly consider having one review the purchase agreement and title work.

Legal Help for FSBO Buyers

Nolo

Nolo has been the go-to legal resource for DIY buyers since 1971. Their real estate guides explain purchase agreements, contingencies, and closing in language anyone can understand.

Browse Legal Guides
LegalZoom

Get a real estate attorney to review your purchase agreement or help you draft an offer letter — often for a fraction of traditional legal fees.

Get Legal Help
US Legal Forms

Download state-specific purchase agreements, addenda, and disclosure forms — written by attorneys, ready to use in your state.

Browse Real Estate Forms

Frequently Asked Questions

What first-time buyer programs are available in California?

California first-time buyers can access programs through the California Housing Finance Agency (CalHFA) (https://www.calhfa.ca.gov/), including the CalHFA MyHome Assistance Program (Up to 3.5% of purchase price — deferred until sale or refinance) and the CalHFA Dream For All (Up to 20% of purchase price — subject to program availability). Federal programs like FHA loans (3.5% down) and USDA loans (0% down in eligible areas) are also available.

What are typical closing costs in California?

Closing costs in California typically run 2.5% of the purchase price. Transfer tax: ~0.11% state + county/city add-ons. California charges a documentary transfer tax of $1.10 per $1,000 (0.11%) at the county level. Many cities add their own tax — Los Angeles adds 0.45%, for example.

Do I need an attorney to buy a home in California?

California uses escrow and title companies for closings. An attorney is not required, but many buyers in complex transactions hire one independently.

What is the average home price in California?

The median home price in California is approximately $785,000. Property taxes average 0.73% of assessed value annually.

Affiliate Disclosure: This page contains affiliate links. FirstTimeBuyerHub.com may earn a commission when you click through and complete an action, at no additional cost to you. We only feature partners we'd recommend to a family member. Full disclosure →