Mortgage Affordability Calculator for California

Buying a Home in California: What You Can Afford

The median home value in California is $785,000. California remains the most expensive state for housing. After a 2022-2023 correction of 10-15%, prices have recovered in most metros. San Jose, San Francisco, and Orange County lead nationally.

Conforming Loan Limits in California

The conforming loan limit in California is $1,089,300. Most California coastal counties qualify for high-cost area limits of up to $1,089,300. San Francisco, Santa Cruz, and Marin counties are at the national ceiling. Loans above this threshold are considered jumbo loans and typically carry stricter qualification requirements and slightly higher rates.

Property Taxes to Budget For

Beyond your mortgage payment, budget for California's property taxes: the effective rate is 0.71%, meaning a home at the median value generates about $4,016/year in taxes. This is a real cost that lenders include in your debt-to-income (DTI) calculation.

Closing Costs in California

Buyers typically pay around $7,200 in closing costs in California. California charges a documentary transfer tax of $1.10/$1,000 of value statewide, with most counties and cities adding their own transfer taxes. Los Angeles city charges an additional 0.45%, and properties over $5M face higher rates. Factor this into your upfront cash requirement alongside your down payment.

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