First-Time Homebuyers in Southern California: What Credit Score and Income Do You Really Need?

One of the biggest questions first-time buyers ask is: “Do I make enough money, and is my credit score high enough to buy a home?” The good news is that most buyers are surprised at how accessible homeownership can be in Southern California — even with modest income and less-than-perfect credit.

Featured image for article: First-Time Homebuyers in Southern California: What Credit Score and Income Do You Really Need?

One of the biggest questions first-time buyers ask is: “Do I make enough money, and is my credit score high enough to buy a home?”

The good news is that most buyers are surprised at how accessible homeownership can be in Southern California — even with modest income and less-than-perfect credit.

Credit Score Guidelines

Here’s what lenders typically look for:

  • FHA Loans: 580+ with 3.5% down (or 500+ with 10% down)
  • Conventional Loans: 620+
  • VA Loans: No official minimum; most lenders work with 580–620 and above
  • Down Payment Assistance Programs: Often require 640+

Income Guidelines

There’s no universal minimum income to qualify. Instead, lenders focus on your debt-to-income ratio (DTI) — the percentage of your monthly income that goes toward debts.

  • Most lenders prefer 43% or less
  • FHA and VA loans may allow higher DTIs in certain cases
  • Many down payment assistance programs also have income caps based on county and household size

Example

Let’s say you’re buying a $650,000 home with an FHA loan. With 3.5% down, your estimated monthly payment might land between $4,300–$4,500 (including taxes and insurance). A lender would look to confirm your income comfortably supports that payment along with any other debts.

How to Improve Your Chances

  1. Check your credit early — correct errors and pay down balances.
  2. Lower your debt — reducing credit card balances can improve both credit score and DTI.
  3. Save for reserves — having extra funds shows stability.
  4. Get pre-approved — it’s the only way to know exactly what you qualify for.

The Bottom Line

You don’t need perfect credit or a huge income to buy a home in Southern California. The right loan program — paired with a clear plan — can help you get into your first home sooner than you think.

Call or text us today: