There is more than one way to finance a home, and the best choice depends on your down payment, credit and plans. Here is a friendly overview.
Conventional loans
Backed by Fannie Mae and Freddie Mac, conventional loans are the most common. You can put as little as 3% to 5% down, and if you put down less than 20% you usually pay mortgage insurance until you have built enough equity.
FHA loans
Insured by the Federal Housing Administration, FHA loans can be a great fit for smaller down payments (as low as 3.5%) and a wider range of credit histories.
VA loans
For eligible veterans, service members and some surviving spouses, VA loans can offer no down payment and no monthly mortgage insurance. There is a one-time funding fee unless you are exempt.
Jumbo loans
Loans above the conforming limit are called jumbo loans. They are common in higher-priced neighborhoods, often ask for a larger down payment and more reserves, and are available from many lenders.
The 2026 loan limits for one-unit homes
These come from the Federal Housing Finance Agency's official county list: - San Diego County: $1,104,000 (Coronado, Carlsbad, Chula Vista, EastLake, Otay Mesa and Ocean View Hills) - Orange County: $1,249,125 (San Clemente) - Baseline for most counties nationwide: $832,750
Loans at or under the limit are conforming loans. Above it, you are in jumbo territory. Limits are reviewed every year.
How to choose
Talk to two or three lenders and compare their Loan Estimates side by side. Ask about rates, points, fees and how long the rate is locked. Rudy can introduce you to lenders known for clear communication.
Curious how the rate changes your payment? Try the payment calculator, which starts at the current national average.
Talk to a lender. Rates, loan programs and approvals come from lenders, not from websites or real estate agents. Talk to your own mortgage broker, or use our preferred lender, Rodrigo Ballon with CrossCountry Mortgage, at 858-735-0255. You are always free to choose any lender you like, and you can verify any lender’s license at nmlsconsumeraccess.org.
Programs and limits change. Confirm current terms with your lender.
More in Buyer Guides
- First-Time Buyer: The 10 Steps — A friendly checklist from first budget to keys, built for people buying for the first time.
- From Accepted Offer to Keys: Your Day-by-Day Timeline — What happens in the roughly 30 days after your offer is accepted, and what to do each week.
- Working With a Buyer's Agent: The Written Agreement and How It Works — What the buyer representation agreement covers, how agents are paid, and what to expect from a great one.
- Down Payment Help: Programs Worth Checking — Where buyers look for down payment and closing cost help in California and San Diego County.
- Property Taxes, Mello-Roos and HOA Dues: Know Your Monthly Number — How California property tax works, what special assessments and HOA dues are, and how to budget them.
- Homeowners Insurance: Get Your Quote Early and Keep It Simple — What a home policy covers, how to shop quotes, and why lining it up early makes closing smooth.
- Inspections and Disclosures: Your Information Advantage — The reports and forms that tell you everything about a home, and how to use them with confidence.
- Writing an Offer That Wins (and Still Protects You) — How to build an offer that stands out through price, terms and timing, with your interests protected.
- Closing Costs Explained — Every line on your closing statement, in plain English, with realistic ranges.
General information only, not legal, tax or financial advice. Programs, rules and limits change, so confirm details with your lender, escrow officer, attorney or tax professional.