How much can you spend on a house? This is the first question for those looking for their first home in West Covina. The answer starts not with income, but with down payment and credit score. There are three main things to check.

First, the price level. The median home price in West Covina is $839,498 (as of May 2026, Redfin). A 20% down payment requires $168,000 in cash. The loan amount would be $671,600. With an interest rate of around 6.6%, the monthly principal and interest would be about $4,290.

Second, the type of loan. An FHA loan can start with a 3.5% down payment if your credit score is 580 or higher. If your score is between 500 and 579, a 10% down payment is required (FHA.com). A conventional loan can be available from 3% for first-time homebuyers or those with an area median income of 80% or less. Typically, many prepare around 5%. If the down payment is less than 20%, PMI will apply. If it's 20% or more, this cost is waived.

Third, property taxes. The average effective tax rate in Los Angeles County, where West Covina is located, is 0.69% (propertytaxrates.org, as of 2026). However, there are areas with local bonds or special assessments. It's safer to check the actual tax rate based on the property address.

First-time homebuyers should also consider the CalHFA MyHome Assistance Program. This is a second mortgage that can provide support for down payment or closing costs of up to about 3% of the purchase price or appraised value. Repayment is deferred until the home is sold or refinanced (CalHFA). Income limits and completion of homebuyer education are required conditions.

Getting pre-approved should not be overlooked. The loan officer will calculate the debt-to-income ratio (DTI) based on income, debt, and credit score to inform you of the actual borrowing limit. It's advisable to get this done before making an offer.

Korean families looking at school districts often refer to the GreatSchools ratings for the West Covina Unified School District. School district boundaries change frequently. It's best to verify the assigned school for a property before purchasing.

If you are moving from another state, it's wise not to judge solely based on the purchase price. You should compare the total housing costs, including property taxes and insurance, with your previous residence to see the actual burden.

Closing costs are realistically estimated to be between 2% and 5% of the purchase price.

The MyHome Assistance Program can be applied for in conjunction with CalHFA's own first mortgage products. There are cases where down payment assistance and a low-rate first mortgage are used together (CalHFA). The interest rates offered vary based on credit score ranges. The higher the score, the better the terms.

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 escrow. If issues are found during the inspection period, it can be returned based on the conditions.

When setting a budget, it's safer to base it on total housing costs, including property taxes, insurance, and HOA fees, in addition to principal and interest. It's important to first get a complete picture of how much will be spent each month.

Rate locks are also something to check. This is an option to secure the interest rate for a certain period after applying for a loan. If the lock period is short, the rate may change if closing is delayed. It's safer to set the period according to the expected closing schedule. Each item may seem small, but together they can impact the overall budget. Developing a habit of addressing them in order ultimately saves time.

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