HOME FINANCING · CA

Home Financing Guide for San Mateo County, California

San Mateo County has some of the highest home prices in California, but local CDFIs, credit unions, and ITIN-friendly lenders can help solo contractors and first-time buyers find a realistic path to ownership. This guide walks you through what home financing is, who qualifies locally, which documents you need, and which San Mateo County institutions actually serve working families. It also covers California-specific programs and flags the predatory traps that are common in high-cost markets.

§ 01 — What it is

What Is Home Financing?

Home financing means borrowing money to buy or refinance a home, then paying it back over time — usually 15 or 30 years — with interest. The lender holds a lien on the property until the loan is fully repaid. The most common types are: • **Conventional loans** – Offered by banks and credit unions, typically requiring a credit score of 620 or higher and a down payment of 3%–20%. • **FHA loans** – Backed by the Federal Housing Administration; useful for buyers with credit scores as low as 580 and down payments as low as 3.5%. They come with mortgage insurance premiums. • **VA loans** – For eligible veterans and active military; often require no down payment. • **USDA loans** – For rural or semi-rural areas; some parts of San Mateo County's coastside (Half Moon Bay area) may qualify. • **ITIN loans** – For buyers who do not have a Social Security Number but file taxes with an Individual Taxpayer Identification Number. Several local lenders in San Mateo County offer these. • **CalHFA loans** – California's own first-time buyer program, administered through approved local lenders. In San Mateo County, the median home price regularly exceeds $1.5 million, which means many buyers need jumbo loans or creative combinations of programs. Working with a local intermediary — not a national call center — makes a significant difference.

§ 02 — Who qualifies

Who Qualifies? Local Context for San Mateo County

Qualifying for a home loan in San Mateo County depends on your income, credit history, employment type, and immigration status. Here is how that plays out locally: **Income:** The Area Median Income (AMI) for San Mateo County is among the highest in the nation — around $168,000 for a family of four (2024 HUD figures). Many state and local assistance programs cap eligibility at 80%–120% of AMI, which still covers a wide range of working families and contractors. **Self-employed and solo contractors:** San Mateo County has a large gig and construction workforce. Lenders typically want 2 years of self-employment history shown on tax returns. Some local credit unions and CDFIs offer bank-statement loans — they average 12–24 months of deposits instead of W-2s — which is helpful if your income fluctuates. **ITIN borrowers:** Buyers without a Social Security Number can still qualify through ITIN lending programs. Several Peninsula-area lenders specialize in this. You will need a solid rental history, 2 years of tax returns filed with your ITIN, and a larger down payment (typically 15%–25%). **Credit:** Conventional lending usually requires 620+. Some local credit unions and CDFI programs work with scores below 620 through credit-building bridges before you apply. **Immigration status:** ITIN loans, as noted above, do not require citizenship or a green card. Permanent residents qualify for most conventional and FHA products.

§ 03 — What you need

Documents You Will Typically Need

Gathering paperwork early saves weeks. Here is a practical checklist for San Mateo County applicants: **For all borrowers:** - Government-issued photo ID (passport, consular ID, or driver's license) - Social Security Number or ITIN - 2 years of federal tax returns (all pages, all schedules) - 2 most recent W-2s or 1099s - 2–3 months of bank statements (all pages, all accounts) - 2 most recent pay stubs (if employed by someone else) - Landlord contact or 12–24 months of canceled rent checks (proof of rental history) - Gift letter (if a family member is contributing to your down payment) **Additional for self-employed / solo contractors:** - Business license or DBA registration - Profit-and-loss statement (year-to-date, prepared or signed by a CPA) - 12–24 months of business bank statements - 1099s from clients **Additional for ITIN borrowers:** - ITIN letter from the IRS - 2 years of ITIN-filed tax transcripts (you can request these free from the IRS at IRS.gov) - Proof of 12–24 months on-time rent payments - Utility or phone bills as supplemental ID **San Mateo County-specific note:** If you are applying for a down-payment assistance loan through the County of San Mateo or a local CDFI, you will also need to complete a HUD-approved homebuyer education course. Several are offered in Spanish and English through local nonprofits.

§ 04 — Where to start in San Mateo County

Local Lenders, CDFIs, and Community Resources That Serve San Mateo County

These are institutions with a real presence on the San Francisco Peninsula — not national call centers. Origen Capital is a directory, not a lender, and does not receive referral fees. **County of San Mateo — Housing Programs** The County's Department of Housing offers down-payment assistance loans (deferred, low-interest) for income-eligible first-time buyers. Programs include the Mortgage Assistance Program (MAP). Visit SMCHousing.org for current income limits and open enrollment windows. **Hello Housing (San Mateo County partner)** Hello Housing administers several of San Mateo County's below-market homeownership programs. They run the application and counseling process for County-funded assistance and can guide you through eligibility step by step. HelloHousing.org. **Self-Help Federal Credit Union (multiple Bay Area branches)** Self-Help is a CDFI-certified credit union with strong roots in serving Latino and immigrant communities. They offer ITIN mortgage products, first-time buyer loans, and credit counseling. Branches in the Bay Area serve San Mateo County residents. SelfHelpFCU.org. **Bay Federal Credit Union / Patelco Credit Union / First Tech Federal Credit Union** These regional credit unions serve Peninsula members, offer competitive mortgage rates, and are more flexible than big banks on self-employment documentation. **Mechanics Bank (formerly Rabobank/National Western)** Offers community lending products on the Peninsula with some flexibility for non-traditional income documentation. **Community First Fund / Opportunity Fund (CDFI)** Opportunity Fund is a Bay Area CDFI focused on small-business and personal financial health; they can help contractors stabilize income before a mortgage application. OpportunityFund.org. **HUD-Approved Housing Counseling Agencies in San Mateo County:** - **Project Sentinel** (Redwood City) — offers free and low-cost pre-purchase counseling, in English and Spanish. Housing.org. - **Eden Council for Hope and Opportunity (ECHO Housing)** — counseling, fair-housing advocacy, multilingual services. **SBA San Francisco District Office** For solo contractors who mix business and real estate (e.g., buying a mixed-use property or a property with a home-based business component), the SBA San Francisco District Office serves San Mateo County. 455 Market St, San Francisco. SBA.gov/offices/district/ca/san-francisco. **ITIN-Friendly Lenders on the Peninsula** Beyond Self-Help FCU, ask local mortgage brokers about ITIN portfolio lenders. Some community banks and credit unions hold these loans in-house (they don't sell them to Fannie Mae), which gives them more flexibility on documentation.

§ 05 — What to avoid

California State-Specific Programs and Regulatory Notes

California has strong consumer protections and meaningful state-level programs. Here is what matters most for San Mateo County buyers: **CalHFA (California Housing Finance Agency)** CalHFA offers first mortgage loans and down-payment assistance (MyHome Assistance Program) statewide, including San Mateo County. You must use a CalHFA-approved lender; not all banks qualify. Income and purchase price limits apply — and given San Mateo County prices, check current limits carefully at CalHFA.ca.gov. First-time buyer education (e.g., through eHome America or Framework) is required. **California Dream for All (Shared Appreciation Loan)** This program provides up to 20% of the purchase price as a state loan — no monthly payments — in exchange for a share of appreciation when you sell or refinance. It has been oversubscribed; check CalHFA.ca.gov for current availability and lottery windows. **Property Tax: Proposition 19 (2020)** Prop 19 changed how property tax bases transfer between family members and when you move. If you are buying from a family member or plan to eventually transfer the property to children, consult a California CPA or real estate attorney before closing. **PACE Loans (Property Assessed Clean Energy)** California law allows PACE liens (e.g., for solar panels) to be attached to your property tax bill. These can interfere with your mortgage. Never agree to a PACE lien without understanding how it affects your existing or future home loan. **California Homeowner Bill of Rights** California has strong foreclosure protections, including a ban on dual-tracking (pursuing foreclosure while reviewing a loan modification). If you ever face financial hardship, contact a HUD-approved counselor (Project Sentinel, ECHO Housing) before missing a payment — not after. **Conforming Loan Limits** For 2024, the conforming loan limit in San Mateo County is $1,149,825 for a single-family home (a high-cost area limit). Loans above that are jumbo loans and require stronger credit and larger reserves.

§ 06 — Ask a question

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