Loan programs
I'm not tied to one bank's shelf. Here's the honest breakdown of what exists, what it costs you, and the situation each one solves.
2026 California loan limits. The conforming limit is $832,750 in most counties. Los Angeles, Orange and the core Bay Area counties sit at the high-balance ceiling of $1,249,125. Above that, you're in jumbo territory — which is a different set of rules, not a worse one. Limits are set by the FHFA and change every January.
Buying a home
The right program depends on your down payment, your credit, and how long you'll hold the loan — in that order.
PROGRAM 01
The workhorse. Fannie Mae and Freddie Mac guidelines, the sharpest pricing, and mortgage insurance that falls off at 20% equity instead of following you for the life of the loan.
PROGRAM 02
Government-insured and far more forgiving on credit and debt ratios. The trade-off: mortgage insurance that generally stays for the life of the loan unless you refinance out later.
PROGRAM 03
If you've served, this is almost always the best loan on the table. No down payment, no monthly mortgage insurance, and no county loan limit with full entitlement.
PROGRAM 04
Above the county limit. Rules are stricter — more reserves, tighter ratios — but pricing is often surprisingly competitive, and portfolio lenders can be flexible in ways agencies can't.
PROGRAM 05
Fixed for 5, 7 or 10 years, then adjusts. Genuinely useful if you know you're moving or refinancing inside that window — and a bad idea if you don't.
PROGRAM 06
3% down conventional options, plus California housing agency programs that can help with down payment and closing costs. Availability and funding change often — worth asking about before you assume it's out of reach.
Lowering what you pay
A refinance is a tool, not a prize. There are exactly four good reasons to do one — and if none of them apply to you, I'll say so.
The classic. Worth it when the monthly savings pay back the closing costs well before you'd sell or refinance again. Run it on the break-even calculator first.
If your home has appreciated past 20% equity, refinancing out of FHA — where the insurance is permanent — can save real money even at a similar rate.
If your fixed period is ending, moving to a fixed rate buys certainty. Don't wait for the first adjustment to find out what it does to your payment.
Going from 30 years to 15 raises the payment but can cut total interest dramatically. Going the other way frees up monthly cash flow when you need it.
The trap nobody mentions: refinancing a 30-year loan you're eight years into back to a fresh 30-year term can lower your payment while costing you more in total interest. Sometimes that's the right call — cash flow matters. But you should make that trade knowingly, not by accident. I'll always show you both numbers.
Using what you've built
Most long-time California homeowners are sitting on more equity than they realise. The question isn't whether you can access it — it's which door costs you the least.
OPTION A
Replace your existing mortgage with a larger one and take the difference in cash. One loan, one payment, usually the lowest rate of the three options.
OPTION B
A revolving line behind your existing mortgage. Draw what you need, when you need it, and only pay interest on what you've drawn. Rate is variable.
OPTION C
A lump-sum second mortgage at a fixed rate. Your low first-lien rate stays exactly where it is, which is often the whole point.
If you locked a 3% mortgage between 2020 and 2022, protect it. Refinancing $200,000 of equity out of a $700,000 loan at 3% means repricing the entire balance at today's rate. A second lien or HELOC leaves that first mortgage untouched. Nine times out of ten in that scenario, the second lien wins — and it's the single most common mistake I see people about to make.
When the standard box doesn't fit
Being turned down by a bank usually means you didn't fit that bank's guidelines. It rarely means you don't qualify anywhere.
Qualify on 12 or 24 months of deposits instead of tax returns. Built for business owners whose write-offs make their returns look nothing like their actual cash flow.
Qualify on the property's rental income rather than your personal income. No tax returns, no debt-to-income calculation — the property has to carry itself.
Convert liquid assets into qualifying income. Useful for retirees and anyone with substantial savings but modest reportable income.
Buy the next home before selling the current one, so you're not making a contingent offer in a competitive market.
Live in one unit, rent the others, and qualify at owner-occupied terms. Loan limits go substantially higher on multi-unit properties.
Pending HOA litigation can make a condo unwarrantable and kill conventional financing. There are lenders who still work with these — it just takes knowing which ones.
Not sure which applies
Describe your situation and I'll tell you which programs are realistically in play — and which ones aren't worth your time.
