Mortgage lender closing cost rankings in California (2025)

California uses deeds of trust rather than traditional mortgages, which means most foreclosures proceed non-judicially under a trustee's sale process governed by Civil Code Section 2924. This typically makes the foreclosure timeline shorter than in judicial states, though borrowers retain a right of reinstatement up to five business days before the scheduled sale. California is not an attorney-closing state. Licensed escrow companies and title insurers handle closings without a legal requirement for attorney involvement. Transfer taxes are structured as a county documentary transfer tax plus, in many cities (including Los Angeles and San Francisco), an additional city-level transfer tax. The seller typically pays, but this is negotiable. San Francisco's 'Mansion Tax' applies a tiered rate on properties above certain thresholds. Title insurance rates in California are set under a file-and-use regulatory framework overseen by the California Department of Insurance. Prepayment penalties on residential loans are restricted under California Financial Code provisions, and additional consumer protections are administered by the Department of Financial Protection and Innovation (DFPI), which licenses and supervises mortgage servicers and originators operating in the state.

Conventional loans dominate California's purchase market, accounting for 74.9% of originations (157,335 loans) at a median rate of 6.625%, reflecting the state's high home prices and the prevalence of borrowers with strong credit profiles or jumbo-adjacent loan needs. FHA loans represented 18.2% of volume (38,338 originations) at a median rate of 6.25%, serving buyers with smaller down payments, though FHA loan limits can constrain their usefulness in the state's most expensive markets. VA loans made up 6.8% (14,268 originations), supported by California's large active-duty and veteran population near bases such as Camp Pendleton and Naval Base San Diego. USDA loans were negligible at 0.1% (200 originations), consistent with California's predominantly urban and suburban housing stock.