Mortgage FAQ: Getting a Mortgage in California Questions

California Mortgage FAQs: Your Guide to Home Loans in 2026

Securing a mortgage in California remains a key step in homeownership, especially amid 2026's evolving market—with 30-year fixed rates averaging around 5.9–6.1% (per sources like Freddie Mac, Bankrate, and Zillow as of mid-February), improving affordability compared to recent years, and ongoing access to state programs like CalHFA for first-time buyers. In high-cost areas like Orange County and Rancho Santa Margarita, factors such as jumbo loan requirements, PMI thresholds, debt-to-income ratios, and local closing costs play a big role in your options.

These frequently asked questions cover the most common inquiries we field at MacLean Realty Group, including current interest rates and trends, down payment requirements, credit score needs, fixed vs. adjustable-rate mortgages, government-backed loans (FHA, VA, USDA), CalHFA assistance programs, private mortgage insurance (PMI), refinancing basics, and how to get pre-approved in California's competitive environment.

The answers below reflect February 2026 conditions, including stabilizing rates, slight inventory increases, and programs like Dream For All (with registration windows open periodically for down payment help). For personalized mortgage guidance tailored to your situation—whether you're a first-time buyer, purchasing in Rancho Santa Margarita, or exploring refinance options—contact Robert MacLean at MacLean Realty Group. We're here to connect you with trusted lenders and help navigate the process smoothly. Reach out today or check our Buyers FAQ for related home purchasing tips and our California Probate FAQs if financing an inherited property.

What credit score do I need for a mortgage in California in 2026?

620+ for conventional, 580+ for FHA; higher scores (700+) unlock lower rates in high-cost areas like Orange County.

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

3-5% conventional, 3.5% FHA, 0% VA—programs like CalHFA help first-timers reduce this in expensive markets. For more information you can read about The Truth about Down Payments.

Is it better to get a fixed or adjustable rate mortgage in California now?

Fixed offers stability amid rate fluctuations; ARMs suit short-term ownership. If you plan on staying in the home under the amount of break even years, usually around 5-7 years then this may make sense. It can get you in the home earlier than planned and is a good stepping stone. With 2026 predictions of stable 6% rates, fixed remains popular for long term loans.

What are current mortgage rates in California for 2026?

Around 6% (per forecasts)—lock early; shop multiple lenders for the best deal in competitive areas. Mortgage rates change daily and are very different depending on the type of loan, the size of the loan and your credit score. It is best to establish a relationship with a trusted mortgage lender. If you need a referral to one simply reach out.

Do I need private mortgage insurance (PMI) in California?

Depends on the type of loan but generally yes if the down payment <20% on conventional loans—removable at 20% equity. Factor this into affordability calculations.