Real estate FAQ and glossary

Lenders look at your gross monthly income, monthly debts, credit, cash to close and the property. There is no single income cutoff. A published affordability index may quote a large qualifying income for a median-priced home, but underwriting can be tighter or looser depending on your debts and the loan type. Use our affordability calculator as a planning range, then get a pre-approval.

DTI is the share of your gross (pre-tax) monthly income that would go to housing and, separately, to housing plus your other monthly debts. Many conventional files use published guidelines around 28% housing and 36% total, and FHA-style manual underwriting often cites 31% and 43%. Automated findings can allow more, or less, depending on credit, reserves and the program. These are guidelines, not a promise.

A pre-qualification is usually a rough look at the numbers you provide. A full pre-approval means a lender has reviewed documents and, often, an underwriter or an automated system has issued a finding. Sellers typically take a pre-approval more seriously.

No. The rate tracker shows national average weekly 30-year and 15-year fixed rates from a free public survey. Your rate depends on credit, points, loan type, occupancy and the property. Use the averages in the payment calculator, then get a Loan Estimate from a lender.

Mello-Roos is the common name for a special tax levied by a Community Facilities District to pay for infrastructure or services, often in newer communities. It appears as a separate line on the property tax bill, is not based on the home's value the way the 1% general tax is, and often rises a little each year. Ask for the current tax bill and the Notice of Special Tax.

Proposition 13 sets the general property tax at 1% of assessed value, and a purchase usually resets that value to the price you pay. Voter-approved bonds and fixed charges are added, so many Southern California bills run higher than 1% before any Mello-Roos. Enter the total rate from the tax bill if you have it.

If the home is your principal residence, the official homeowners' exemption takes $7,000 off the assessed value, about $70 a year at the 1% general levy. File with the county assessor. See our homeowner savings guide for official claim links.

If you are 55 or older, severely disabled, or a wildfire or disaster victim, you can usually transfer your taxable value to a replacement principal residence in California bought within two years of the sale. If the new home costs more, part of the difference may be added. Use the Prop 19 calculator and file with the assessor.

No. Voters passed Proposition 37 in November 2026, but the program is not open yet. CalHFA will set the rate, term and underwriting rules. Any sample rate or payment you see is an assumption until CalHFA publishes terms. Check CalHFA before you count on it, and do not assume it lowers the monthly payment.

Start with CalHFA (statewide) and then any county or city program that covers the home you want to buy. Programs have income limits, price caps, first-time-buyer rules, education requirements and limited funds. Our down-payment assistance finder links only official pages we could load, and it is not an approval.

They are published typical-rent estimates for a recent month, rounded to the nearest dollar, plus official county fair-market rents used in housing programs. They are not a listing, a lease or a promise of what you will pay. The mix of homes in a city can move the typical figure.

If the building sits in a high-risk flood zone and the loan is federally backed, the lender will usually require flood insurance. Fire insurance depends on the insurer, the hazard, and sometimes a FAIR Plan or last-resort policy. Our hazard map and wildfire insurance guide are for screening only; official answers come from the city or county, a flood determination, and an insurance quote.