First-Time Home Buyer in California: A 2026 Roadmap

By Matthew Martinez, Founder, CEO & Managing Broker, Diamond Real Estate Group. California DRE #01869679.

Buying your first California home in 2026 comes down to eight steps: choose a loan, line up down payment help, get pre-approved, sign a buyer agreement, shop with the disclosures in mind, write a contingent offer, get through inspections and escrow, then close and file your homeowners’ exemption. Each step below links to a deeper guide. The 2026 numbers come straight from CalHFA, FHFA, HUD, VA and the Board of Equalization.

2026 numbers first-time buyers should know

Item	2026 figure	Source
CalHFA MyHome assistance	Up to 3.5% of price (FHA) or 3% (conventional), deferred	CalHFA
FHA minimum down payment	As low as 3.5% of the price	HUD
Conforming loan limit, one unit	$832,750 baseline; up to $1,249,125 in high-cost counties	FHFA
FHA loan limit, one unit	$541,287 floor to $1,249,125 ceiling	HUD ML 2025-23
VA funding fee, first use, under 5% down	2.15% (exemptions apply)	VA
Closing Disclosure timing	At least 3 business days before closing	CFPB
Homeowners’ property tax exemption	$7,000 off assessed value; file by Feb. 15 for the full year	BOE

Loan limits and program caps change every year. Check the current figure with the agency before you rely on it.

Step 1: Pick the loan that fits

Your loan type shapes your down payment, your price range and how your offer reads to a seller.

FHA: down payments as low as 3.5%, available on 1–4 unit homes (HUD). FHA limits vary by county; in Solano, Mendocino, Lake and the Sacramento-area counties they’re lower than the conforming limit.
Conventional: loans at or under your county’s conforming limit follow Fannie Mae and Freddie Mac rules. Above the limit, it’s a jumbo loan.
VA: eligible service members and veterans can buy with no down payment if the price doesn’t exceed the appraised value. VA loans carry no private mortgage insurance (VA). California’s CalVet program is another option.
CalHFA: CalHFA’s FHA, conventional, VA and USDA first mortgages are offered through approved lenders and can pair with its assistance loans (CalHFA).

Go deeper: 2026 loan limits by county · VA home loans in California

Step 2: Line up down payment help

CalHFA’s MyHome Assistance Program is the statewide starting point. It’s a deferred junior loan for first-time buyers within CalHFA’s county income limits. For example, the limit is $264,000 in Sonoma County and $325,000 in Napa and Marin under the limits effective June 30, 2026 (CalHFA income limits).

CalHFA counts you as a first-time buyer if you haven’t owned and lived in a home in the past three years (CalHFA). Dream For All, CalHFA’s shared-appreciation loan for first-generation buyers, runs in rounds; its 2026 window closed March 16, 2026 (CalHFA). Some cities and counties run their own programs, including San Francisco, San Diego, Sacramento and the City of Napa. Funding opens and closes.

Take homebuyer education early. CalHFA requires a course for one occupying first-time borrower. The eHome eight-hour online course (about $100) is the only online option CalHFA accepts (CalHFA). Many local programs also require a course, so finish one before you shop.

Go deeper: Down payment assistance in California

Step 3: Get pre-approved and read your Loan Estimate

A pre-approval from a lender who knows your program, whether CalHFA, VA or a local assistance loan, makes your offer stronger and catches problems early. Compare Loan Estimates from more than one lender. Later, your lender must give you the Closing Disclosure at least three business days before closing so you can compare it with the estimate (CFPB). For free advice, HUD lists approved housing counselors at (800) 569-4287 (HUD).

Step 4: Sign a buyer agreement and set your search

Expect to sign a written buyer representation agreement with your agent. It spells out the services, how long the agreement lasts and how your agent is paid. Read it before you sign; our guide walks through the California rules and forms.

Go deeper: Buyer broker agreement in California

When you set your search, filter by the price your loan and down payment actually support. Include the property’s location factors too: fire hazard severity zone, flood zone, earthquake fault zone, and whether it’s on septic or a well. Each of these affects insurance, inspections and lender conditions.

Step 5: Shop with disclosures and insurance in mind

California sellers provide a stack of disclosures, including a natural hazard disclosure report. Read them before you offer, not after. Get homeowners insurance quotes on any home you’re serious about. In parts of the North Bay and Sierra foothills, insurance availability can shape both your budget and your timeline.

Go deeper: Natural hazard disclosure report

Step 6: Write an offer with the right contingencies

Most California offers are written on the C.A.R. Residential Purchase Agreement. For first-time buyers, the key terms are:

Deposit: your earnest money goes into escrow shortly after acceptance.
Loan contingency: this protects you if financing falls through. Assistance programs add steps, so allow enough time.
Appraisal contingency: this protects you if the home appraises low.
Investigation (inspection) contingency: this gives you time to inspect and request repairs.
Seller credits: credits toward closing costs, within your loan program’s rules.

Go deeper: Loan contingency

Step 7: Inspections and escrow

Once your offer is accepted, escrow opens and the contract deadlines start running.

Inspections. Hire a general home inspector, a licensed pest inspector, and specialists the property calls for: roof, sewer lateral, septic, well, foundation or chimney. A California termite report sorts its findings into Section 1 and Section 2 items, and that split usually drives who pays for which repairs. Lender appraisals, including VA appraisals, aren’t inspections (VA).

Go deeper: Termite report: Section 1 vs. Section 2 · Request for repair

Escrow. Escrow holds funds and documents, orders title, and coordinates with your lender. Expect a title report, the loan’s appraisal and underwriting, contingency removals, a final loan approval, and signing.

Go deeper: California escrow timeline

Closing costs. Budget for lender fees, title and escrow charges, prepaid interest, insurance and property taxes, and any city or county transfer tax the contract assigns to you. Who pays which costs varies by county custom and by negotiation.

Go deeper: Who pays closing costs in California

Step 8: Close, then file two things

Do a final walkthrough, sign your loan documents, and wait for the deed to record. You’ll get your keys when it does. Then:

File for the homeowners’ exemption. If the home is your principal residence, file Form BOE-266 with the county assessor. The exemption reduces your taxable value by $7,000. File by February 15 to get the full exemption for that year (BOE).
Watch for a supplemental tax bill. After a change in ownership, the county can send a separate bill on top of the regular one. Budget for it so it doesn’t surprise you.

Go deeper: Supplemental tax bill in California

Working with Diamond

We help first-time buyers across the North Bay, the wider Bay Area, the Sacramento region, Santa Cruz and Monterey. We coordinate with CalHFA-approved and VA lenders and keep contract deadlines on track. Start on our Buy page.

Questions people ask

How much do I need for a down payment in California?

It depends on the loan. FHA allows as little as 3.5% (HUD). VA can be 0% for eligible buyers. CalHFA’s MyHome can cover up to 3.5% (FHA) or 3% (conventional) as a deferred loan (CalHFA). You’ll also need money for closing costs and reserves.

Who counts as a first-time home buyer in California?

For CalHFA programs, it’s someone who hasn’t owned and lived in a home in the past three years (CalHFA). Local programs set their own definitions, often similar.

Is Dream For All available in 2026?

Its 2026 application window ran February 24 to March 16, 2026, with selection by random drawing (CalHFA). Check CalHFA for any new round.

What’s the 2026 loan limit where I’m buying?

For a one-unit home, it’s $832,750 in Sacramento, Placer, Solano and other baseline counties. It’s $897,000 in Sonoma, $1,017,750 in Napa, and $1,249,125 in Marin, San Francisco and the other ceiling counties (FHFA).

Do I need a home inspection if the lender does an appraisal?

Yes. An appraisal estimates value for the lender. It isn’t an inspection of the home’s condition (VA).

When will I see my final closing costs?

On the Closing Disclosure, which your lender must give you at least three business days before closing (CFPB).

Do I have to apply for the homeowners’ exemption?

Yes. It isn’t automatic. File Form BOE-266 with your county assessor, by February 15 for the full exemption (BOE).

Sources & notes

General information, not legal, tax or lending advice. Updated November 2026. Primary sources are linked in this guide.

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