Housing - DFPI Housing The promise of owning a home can be practical, financial or emotional (often, it’s a combination of all three). The process can be challenging, especially if you’re unfamiliar with the terrain. And, if you’re unsure of what you’re doing, owning a home can present a big financial risk, as well. Because of the complexity of homeownership and potential for risk, it’s important to get home-smart before you make any major commitments. Will the home retain value? Is it in good shape, or will it need costly repair? Is your mortgage sound? Is your lender licensed? DFPI, Housing and You While we can’t weigh in on your ideal home’s curb appeal, we can help you learn the basics of home loans and ownership. DFPI regulates and supervises mortgage lenders, brokers, and servicers operating within California. We’re the go-to resource when it comes to better understanding your rights and obligations, protecting prospective and current homeowners, and promoting a fair and transparent mortgage market in California. Featured Resources Consumer Financial Education: Housing We’ve gathered some helpful tips and resources to help you get started, gather knowledge about mortgages, or apply for government assistance with your loan or rental payments if you’re having trouble. Consumer Financial Education for Military and Veterans This collaborative program between HUD and VA combines HUD housing vouchers with VA supportive services to help Veterans who are homeless and their families find and sustain permanent housing. PACE (Property Assessed Clean Energy): What Homeowners Need to Know The Department of Financial Protection and Innovation began licensing PACE program administrators and regulating the PACE industry in 2019. The DFPI assists consumers with issues involving PACE financing or program administrators. Useful Terms Types of mortgages With a fixed-rate mortgage, your interest rate remains constant throughout the term of the loan. If you take out an adjustable-rate mortgage (ARM) , the interest rate you pay can vary, sometimes dramatically. Government-backed mortgages are insured by agencies such as the Federal Housing Administration (FHA) or Veterans Affairs (VA). Conventional loans are not insured or guaranteed by the government. Down Payment Your down payment is the amount paid upfront when purchasing a home. Annual Percentage Rate (APR) The Annual Percentage Rate (APR) is your total yearly cost of borrowing. Your APR includes both interest payments and any additional fees or charges associated with the loan. Interest Rate Your interest rate represents the cost a lender charges you to use its money. It is the annual percentage of the total loan amount that you have to pay to the lender on the money you’ve borrowed, in addition to repayment of the principal. Principal Your principal is the original amount of money borrowed, separate from interest and fees. As you pay down your loan, part of each payment goes toward your principal and another part goes toward interest. Loan Term The loan term is the length of your mortgage repayment period. Closing Costs Closing costs are fees associated with finalizing a mortgage loan. Escrow Escrow is an account used to hold money during the sale of a home. Homeowners can also use an escrow account to spread out property tax and insurance payments. Other Useful Links Consumer Financial Education: Housing Tips and resources to help you get started, gather knowledge about mortgages, or apply for government assistance with your loan or rental payments if you’re having trouble. NMLS Consumer Access: A free service for consumers to confirm that the financial services company or professional with whom they wish to conduct business is authorized to conduct business in their state. Protect your money. Know your rights: Your go-to resource when it comes to protecting your money and knowing your rights as a financial consumer in California. FTC: Real Estate and Mortgages: The Federal Trade Commission’s page dedicated to helping you understand, pay and protect your mortgage. Other Recent Consumer Alerts and Insights Consumer Insights Automobile Title Loans: What Consumers Need to Know Jan 29, 2026 Exercise caution before borrowing money through an automobile title loan. Few assets are more vital to Californians’ financial security than their automobiles. Using your automobile title as collateral puts that asset at risk. Consumer Insights The New Era of Tech-Enabled Scams Feb 27, 2026 It may seem daunting to keep up with technology these days. As it evolves, it seems to create more opportunities for criminals to exploit consumers. The scale of the problem is huge, and it will take us all working together to turn the tide. Alerts WhatsApp Investment Group called “Sofi Investment Group” Posing as a California-licensed Investment Adviser Mar 9, 2026 The DFPI has received information that individuals are using the WhatsApp group “Sofi Investment Group” to falsely present themselves as licensed investment advisers. Alerts WhatsApp Investment Group called “VIP Guidance Group” Posing as a California-licensed Investment Adviser Feb 18, 2026 An individual calling himself Professor Jake Civiello is falsely posing as a licensed investment adviser. He runs a WhatsApp group called VIP Guidance Group, which is NOT connected to any licensed investment adviser or broker-dealer in CA. 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