One of the first things that those looking for their first home often overlook is the MyHome Assistance Program from the California Housing Finance Agency, or CalHFA. This program offers a second mortgage that can cover up to 3% of the purchase price or appraised value for down payment or closing costs, with repayment deferred until the home is sold or refinanced (CalHFA official guide). However, it's important to note that there are conditions such as first-time homebuyer requirements, income limits, and completion of homebuyer education.

Looking at the San Fernando market, a gradual trend has emerged recently. As of June 2026, the median sale price is $749,999 (Redfin). Assuming a 20% down payment, you would need approximately $150,000 in cash and a $600,000 loan, which would result in a monthly principal and interest payment of around $3,830 based on a 30-year fixed rate of about 6.6%. If you opt for an FHA loan with a 3.5% down payment, your initial cash requirement drops to $26,250, but the monthly payment could rise to around $4,630 due to a larger loan principal.

The type of loan varies based on credit score. An FHA loan can start with a 3.5% down payment if your credit score is 580 or higher, while a score between 500 and 579 requires a 10% down payment (FHA.com). For conventional loans, first-time homebuyers or those with an income at or below 80% of the area median can start with as little as 3%, though most typically prepare around 5%. If you put down less than 20%, PMI will apply, but if you put down 20% or more, this cost is eliminated.

Property taxes are another item to consider. The average effective tax rate in Los Angeles County, where San Fernando is located, is about 0.69% (propertytaxrates.org, as of 2026). However, some areas may have additional local bonds or special assessments, so it's safer to check the actual tax rate based on the property address with the county assessor's office.

During the pre-approval stage, the debt-to-income ratio, or DTI, is also assessed. The lower this ratio, the more favorable the loan limits and interest rate terms will be, so it's advisable to consult with a loan officer before making an offer.

If you are a Korean family considering school districts, it's important to note that there can be significant variations in GreatSchools ratings depending on the neighborhood within San Fernando Valley. School district boundaries change frequently, so be sure to verify the assigned school for a property before purchasing.

When relocating from another state, budgeting based on your previous state's costs can lead to oversights. You need to factor in California's structure, where property taxes are lower but income taxes and homeowners insurance are relatively higher, to accurately gauge the difference in living expenses.

Closing costs are typically estimated to be between 2% and 5% of the purchase price. This includes appraisal fees, inspection fees, title insurance, and escrow fees, and it's important to compare itemized costs from different lenders.

The MyHome Assistance Program can be applied for in conjunction with CalHFA's own first mortgage products, allowing for the use of down payment assistance loans alongside a relatively low-interest first mortgage (CalHFA). The trend of receiving more favorable interest rate terms with higher credit scores is similar across all lenders.

When making an offer, it's customary to include an earnest money deposit of 1% to 3% of the purchase price. This money is held in an escrow account and can be refunded based on the contract terms if issues are discovered during the inspection period.

This article is not investment or legal advice, and it is recommended to confirm conditions that suit your personal situation with a loan officer or real estate professional before finalizing any contracts.