Know your loan options before you call a lender
Your California mortgage resource — information and market trends for home buyers, first-time buyers, self-employed borrowers, and investors. No sales pitch. Just clarity.
The California Home Loan Playbook
Every California loan type — plain English
Conventional Loan
The most common loan in California. Backed by Fannie Mae or Freddie Mac — not the government. Best rates for W-2 borrowers with solid credit. PMI cancels automatically when you hit 20% equity.
FHA Loan
Government-backed with flexible credit requirements — the go-to for first-time buyers with limited savings. FHA MIP is required for the life of the loan if you put less than 10% down. Factor that long-term cost in before assuming FHA is cheaper.
VA Loan
One of the most powerful mortgage benefits available. Zero down, no PMI ever, competitive rates. For active duty, veterans, and eligible surviving spouses. California has one of the highest VA loan volumes in the country.
Jumbo Loan
Any loan above the conforming limit is jumbo — and in California that includes a massive portion of the market. Westside LA, Malibu, Venice, Beverly Hills: nearly every transaction here requires jumbo financing. Stricter reserves and credit, but completely standard for these markets.
Bank Statement Loan
Built for self-employed borrowers whose tax returns don't reflect real income due to legitimate write-offs. Qualify on 12–24 months of bank deposits. No tax returns, no Schedule C, no W-2. Extremely common in LA's entrepreneur, creative, and entertainment industries.
DSCR / Investor Loan
Qualify on the property's rental income — not your personal income. No W-2, no tax returns, no employment verification. The property pays for itself on paper, and that's what counts. How serious CA investors build portfolios.
Cash-Out Refinance
Tap existing equity by refinancing into a larger loan. Proceeds for renovations, down payments on investment properties, or debt payoff. California's appreciation has left many homeowners with massive untapped equity — knowing how to access it intelligently matters.
CalHFA Programs
The California Housing Finance Agency offers state-backed programs for first-time buyers — most with income and purchase price limits. Stacking CalHFA with FHA or conventional can cover your down payment AND closing costs in a single package.
Your write-offs built your business. They shouldn't cost you your home.
California has more self-employed workers than almost any other state. The traditional mortgage system was built for W-2 earners — bank statement loans were built for you.
Learn About Bank Statement Loans →Down payment programs most buyers don't know exist
California has some of the strongest first-time buyer assistance in the country. Most people assume they don't qualify — they never check.
CalHFA MyHome Assistance
Deferred junior loan up to 3.5% of purchase price. No monthly payment — repaid only when you sell or refinance.
Zero Monthly CostCalHFA ZIP Program
Zero-Interest Program covering closing costs. Pairs with a CalPLUS first mortgage. Fully deferred, no interest, no payment.
No Interest EverCalifornia Dream For All
State covers 20% down as a shared appreciation loan. Designed for first-generation buyers — waitlists fill extremely fast.
20% Down CoveredExtra Credit Teacher Home
For K-12 teachers, administrators, and classified staff in high-priority CA schools. Below-market rates plus down payment assistance.
Education ProfessionalsCalVet Home Loans
California's own veteran loan — separate from federal VA benefits. Competitive fixed rates with additional CA-specific protections.
Veterans OnlyLACDA — LA County DPA
LA County's own down payment assistance for qualifying buyers in unincorporated areas. Income limits apply.
LA County SpecificSee your real numbers before you apply
Estimate monthly payment or home affordability in seconds.
Build your CA rental portfolio without W-2 income.
DSCR loans let the property qualify itself. If the rent covers the mortgage — you qualify. No personal income docs, no tax return drama.
Learn About DSCR Loans →
What every CA borrower should read first
The highest-traffic mortgage guide topics — California-specific, no upsell.
CA Mortgage Rates 2026: What's Actually Moving Them
The 10-year Treasury, Fed policy, and your credit score all pull in different directions. Here's how they interact.
Bank Statement Loans: The Self-Employed Playbook
Write-offs reduce your taxes and kill your mortgage qualification. Bank statement loans fix that.
How to Buy in LA With Less Than 10% Down
CalHFA, FHA, and conventional compared side-by-side. Real numbers on a $750K purchase.
DSCR Loans: Qualify on Rent, Not W-2 Income
Building a rental portfolio? DSCR loans let the property do the qualifying. Here's the math.
Pre-Qualified vs Pre-Approved: Why It Matters
In a multiple-offer situation, a weak pre-qual is ignored. Here's what actually matters.
CalHFA Programs Explained: MyHome, ZIP, and Dream For All
State-backed down payment help most California buyers never think to check for.
Your Free Guide to California Home Loans
- Every CA loan type in plain English
- CalHFA & programs most buyers miss
- How lenders calculate what you can borrow
- Self-employed & investor loan options compared
- 7 documents every lender will ask for
- Rate lock strategy — when to lock, when to float
- Red flags in your Loan Estimate to never ignore
- Full mortgage glossary — 28 terms defined
Get your free copy
No lender calls. Just the guide California buyers actually need.
Mettkey is an educational resource — not a lender, broker, or mortgage company. NMLS #2779492 | Shiva T. Mettke.
Terms worth knowing before you apply
Lenders love acronyms. Here's plain English for the ones you'll actually encounter.
APR (Annual Percentage Rate)
True cost of borrowing including fees and interest. Always higher than the rate. Use APR to compare loans apples-to-apples.
DTI (Debt-to-Income Ratio)
Total monthly debts ÷ gross monthly income. Most lenders cap at 43–50%. Primary qualification metric for most loan types.
LTV (Loan-to-Value)
Loan amount ÷ property value. 80% LTV = 20% down. Higher LTV = more lender risk = higher rates or PMI.
PMI / MIP
Mortgage insurance required when LTV exceeds 80% on conventional (PMI) or FHA loans (MIP). Adds $50–$400/mo depending on loan size.
Non-QM Loan
Non-Qualified Mortgage — outside standard CFPB guidelines. Includes bank statement, DSCR, asset depletion. Not subprime — just different criteria.
DSCR
Debt Service Coverage Ratio. Gross rent ÷ PITIA. Used to qualify investment loans without personal income. Most lenders want 1.1–1.25+.
Escrow (CA-Specific)
Neutral third party managing funds and docs in a CA transaction. Also the monthly impound for property taxes and insurance in your payment.
Rate Lock
Lender commitment to hold your rate for 30–60 days. Protects against rate increases during underwriting — expires if closing is delayed.
PITIA
Principal + Interest + Taxes + Insurance + HOA. The full monthly housing cost used in DTI and DSCR calculations.
Clear to Close (CTC)
All underwriting conditions satisfied. Lender is ready to fund. Final step before your signing appointment.
Deed of Trust
California's version of a mortgage. A third-party trustee holds title during the loan — standard in CA, changes nothing for you.
Loan Estimate (LE)
3-page disclosure required within 3 business days of application. Use it to compare lenders on rate, fees, and cash to close.
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