California Mortgage Rates 2025: Home Loans & First-Time Buyer Programs
California's real estate market is competitive, but first-time buyers have access to exclusive programs and favorable rates. This guide reveals current mortgage rates, state-specific loan programs, and strategies to get the best deal in California.
⚡ Quick Facts - California 2025:
- Average 30-year rate: 6.45% (vs 6.72% national)
- Median home price: $783,000
- Popular loans: Conventional 62%, FHA 18%, VA 12%, USDA 8%
- Down payment assistance: 15+ programs available
- Property tax: ~0.76% (Prop 13 protections)
Current Mortgage Rates in California
California mortgage rates are slightly lower than the national average, making it a favorable market for borrowers. Compare current rates from California lenders.
| Loan Type | Rate Range | Down Payment | Best For |
|---|---|---|---|
| Conventional | 6.5%-7.2% | 5-20% | Good credit (620+) |
| FHA | 6.2%-6.8% | 3.5% | First-time buyers |
| VA | 6.0%-6.5% | 0% | Veterans |
| USDA | 6.1%-6.7% | 0% | Rural areas |
California First-Time Buyer Programs
CalHFA FirstTime Homebuyer Program
Down payment assistance up to 3.5% with favorable terms. Income limits apply.
California Dream For All
Shared appreciation loans with 0% interest assistance. Unique program for California buyers.
County-Specific Programs
Bay Area, Los Angeles, San Diego, and Sacramento counties offer additional down payment assistance.
County-by-County Analysis
California's real estate market varies dramatically by county. According to the California Association of Realtors, home prices range from $520K in Sacramento to $1.25M+ in San Francisco. Understanding your local market is critical for negotiating the best deal.
| County | Median Price | Avg Rate | Market | Days on Market |
|---|---|---|---|---|
| San Francisco | $1,250,000 | 6.4% | Competitive | 28 days |
| Los Angeles | $650,000 | 6.5% | Moderate | 35 days |
| San Diego | $850,000 | 6.45% | Competitive | 32 days |
| Sacramento | $520,000 | 6.5% | Favorable | 42 days |
| Fresno | $380,000 | 6.55% | Very Favorable | 45 days |
Market Insights by Region
Bay Area (San Francisco, Oakland, San Jose)
Market Conditions: Highly competitive, tech-driven economy, median $1.25M+
Buyer Strategy: Pre-approval essential. Multiple offers common. Expect to pay above asking price.
First-Time Buyer Challenge: High prices make down payment assistance critical. CalHFA programs essential.
Southern California (Los Angeles, San Diego)
Market Conditions: Moderate competition, diverse neighborhoods, median $650K-$850K
Buyer Strategy: More negotiation room than Bay Area. Inspect thoroughly for earthquake/fire risks.
First-Time Buyer Advantage: More affordable than Bay Area. Strong local first-time buyer programs.
Central Valley (Sacramento, Fresno, Bakersfield)
Market Conditions: Most affordable, growing job market, median $380K-$520K
Buyer Strategy: Best value in California. More inventory. Longer days on market = more negotiation power.
First-Time Buyer Advantage: Most affordable prices. Easier to qualify. Strong job growth.
Local Economic Factors Affecting Rates
California's mortgage rates are influenced by tech sector employment, population migration, and state-specific regulations. The Bay Area's tech boom keeps rates competitive, while rural areas offer more favorable terms.
Best Lenders for California Mortgages
Compare top California mortgage lenders to find competitive rates and programs tailored to California buyers.
Ready to Get a California Mortgage?
Compare rates from multiple California lenders and find the best program for your situation.
Compare California Lenders →FAQ: California Mortgages
Do I need to be a California resident to get a California mortgage?
No, but you must be buying property in California. Out-of-state buyers can get mortgages with proper documentation.
What is Prop 13 and how does it affect property taxes?
Prop 13 limits property tax increases to 2% annually, even if home value increases. This keeps California property taxes lower than national average.
Can I get a mortgage with a lower credit score in California?
Yes. FHA loans accept scores as low as 580. California lenders are competitive and may offer programs for lower scores.
The Bottom Line
California offers competitive mortgage rates and exclusive first-time buyer programs. With rates averaging 6.45%, now is a good time to buy. Compare lenders, explore state programs, and get pre-approved today.