Mortgage Lender in Desert Hot Springs, CA
Desert Hot Springs sits above the Coachella Valley floor with panoramic mountain views, world-famous natural hot mineral springs, and some of the most affordable home prices in the region. Choice One Mortgage helps DHS buyers and investors find the right loan from dozens of wholesale lenders.
If you are looking for an affordable entry into Coachella Valley homeownership, Desert Hot Springs deserves a close look. Perched on the north side of Interstate 10 at a higher elevation than its valley neighbors, DHS offers sweeping views of the San Jacinto and Santa Rosa mountains, a young and diverse community, and median home prices that remain well below those in Palm Springs, Palm Desert, or La Quinta. The city’s underground aquifer of naturally heated mineral water has fueled a growing boutique hotel and spa scene, and new residential developments continue to reshape the landscape along Pierson Boulevard and throughout the city.
Choice One Mortgage Company has served Southern California homebuyers since 1995 and has been based in La Quinta since 2017. Our office is located at 78015 Main Street, Suite 201, La Quinta — a short drive from Desert Hot Springs. Call founder Bill Lewis directly at (310) 614-5920 for a free, no-obligation loan analysis tailored to the DHS market.
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The Desert Hot Springs Housing Market
Desert Hot Springs is the most affordable city in the western Coachella Valley, with single-family homes commonly priced between $250,000 and $450,000. That price range puts homeownership within reach for first-time buyers, young families, and working professionals who might be priced out of neighboring Palm Springs or Cathedral City. FHA loans and California Housing Finance Agency (CalHFA) down payment assistance programs are extremely popular here, and we help DHS buyers take full advantage of them.
The city is experiencing rapid growth. Significant new construction is underway, bringing modern floor plans and energy-efficient homes to a community that has historically offered older, more affordable housing stock. At the same time, investor interest is climbing — particularly around the hot springs district, where entrepreneurs are converting properties into boutique spas, wellness retreats, and vacation rentals. The legalization of cannabis cultivation has also brought commercial development and employment opportunities to the city.
Desert Hot Springs is served by the Palm Springs Unified School District, and the community surrounding Desert Hot Springs High School has seen steady residential investment. With stunning mountain views, a lower cost of living, and proximity to the amenities of greater Palm Springs, DHS is attracting a growing number of buyers who want the desert lifestyle without the desert price tag.
Desert Hot Springs Neighborhoods We Serve
Mission Lakes Country Club
A gated golf community in the northwest part of the city, Mission Lakes offers single-family homes, condos, and townhomes in a resort-style setting. Prices range from the mid-$200Ks to the mid-$400Ks, making it one of the most affordable golf communities in the entire Coachella Valley. Conventional and FHA loans are both commonly used here.
Two Bunch Palms Area
Named after the legendary Two Bunch Palms spa resort, this area near the city’s natural hot springs has become a hotspot for boutique hotel conversions and short-term rental investments. DSCR investor loans are especially relevant for buyers purchasing properties in this district.
Miracle Hill
One of DHS’s established residential areas with a mix of older ranch-style homes and renovated properties. Homes here often fall in the $250K to $375K range, making them ideal for first-time buyers using FHA financing or CalHFA down payment assistance.
Pierson Boulevard Corridor
The main commercial and residential spine of Desert Hot Springs, Pierson Boulevard has seen significant new development in recent years. Newer subdivisions along this corridor offer modern construction with open floor plans, typically priced between $350K and $450K.
Sky Valley
An unincorporated community just east of Desert Hot Springs, Sky Valley offers larger lot sizes and a more rural desert feel. Homes here appeal to buyers who want space, privacy, and mountain views at prices that are often lower than within DHS city limits.
Desert Hot Springs High School Area
The neighborhoods surrounding DHSHS are popular with young families thanks to their proximity to schools, parks, and newer commercial development. This area represents the core of the DHS first-time buyer market, with homes commonly priced between $280K and $400K.
Home Loan Programs for Desert Hot Springs Buyers
As a mortgage broker, Choice One Mortgage shops dozens of wholesale lenders to find the best rate and program for your situation. Here are the loan products we most commonly originate for Desert Hot Springs homebuyers and property investors:
FHA Loans
FHA loans are the most popular financing option in Desert Hot Springs, and for good reason. With just 3.5% down and flexible credit requirements, FHA makes homeownership accessible to buyers who might not qualify for conventional financing. On a $350,000 home in DHS, the FHA down payment is just $12,250. We walk every first-time buyer through the FHA process step by step, from pre-approval through closing.
CalHFA Down Payment Assistance
Many Desert Hot Springs buyers qualify for CalHFA programs that provide down payment and closing cost assistance in the form of deferred-payment junior loans. When combined with an FHA first mortgage, CalHFA can significantly reduce the cash a buyer needs to close. DHS home prices fall squarely within CalHFA purchase price limits, making these programs an excellent fit for the local market. We are experienced CalHFA-approved lenders and handle the additional paperwork so you do not have to.
Conventional Loans
For buyers with strong credit and at least 3% down, conventional loans offer competitive rates and lower mortgage insurance costs than FHA. The 2026 conforming loan limit for Riverside County is $766,550, which comfortably covers virtually every home in Desert Hot Springs. Buyers with 20% down avoid private mortgage insurance entirely.
VA Loans
Desert Hot Springs is home to many veterans and military families. VA loans offer zero down payment and no monthly mortgage insurance, which can save hundreds of dollars per month compared to FHA or conventional financing. On a $375,000 DHS home, a VA loan eliminates the need for a $13,125 down payment entirely. We are experienced VA loan originators and understand the specific requirements of VA appraisals.
DSCR Investor Loans
The growing boutique spa and vacation rental market around the Desert Hot Springs hot springs district has attracted real estate investors from across California. Our DSCR (Debt Service Coverage Ratio) loans qualify investors based on the property’s rental income rather than personal income. This is ideal for buyers purchasing properties to convert into short-term rentals, wellness retreats, or boutique hotels near Two Bunch Palms and the hot springs corridor. No tax returns or W-2s required.
Refinancing
Desert Hot Springs homeowners who purchased during the city’s recent growth period may have built significant equity as property values have risen. Whether you want to lower your rate, shorten your term, eliminate mortgage insurance, or cash out equity for home improvements, we can help you evaluate your options. Our Refinance Scenario Builder lets you compare scenarios side by side.
Why Choose a Local Coachella Valley Mortgage Broker?
When you apply with a national online lender, you are one of thousands of files being processed in a distant call center. When you work with Choice One Mortgage, you are working directly with Bill Lewis — a licensed mortgage professional with over 30 years of experience and a deep understanding of the Coachella Valley real estate market.
Here is what that means for Desert Hot Springs buyers:
- Dozens of lenders, one application — As a broker, we shop your loan across dozens of wholesale lenders to find the best rate and terms. You fill out one application; we do the comparison shopping for you.
- Local market expertise — We understand the DHS market, including which neighborhoods are appreciating fastest, how to handle appraisals in a rapidly growing city, and which loan programs work best for the local price range.
- Direct communication — You will have Bill’s cell phone number. When you have a question at 7pm, you get an answer — not a voicemail tree or a chatbot.
- First-time buyer specialists — A large portion of our DHS clients are purchasing their first home. We take the time to explain every step of the process and make sure you understand your options before making any decisions.
- Faster closings — We work with local title companies and appraisers who know the desert market, so our average closing time is significantly shorter than what national lenders offer.
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Frequently Asked Questions About Desert Hot Springs Mortgages
How much do I need for a down payment on a home in Desert Hot Springs?
Down payment requirements depend on the loan type. FHA loans require 3.5% down, conventional loans start at 3% down, and VA loans offer zero down payment for eligible veterans. On a $350,000 home in DHS, an FHA down payment is $12,250, while a 3% conventional down payment is $10,500. CalHFA down payment assistance programs can further reduce the cash you need. Call us at (310) 614-5920 to explore your options.
Can I use a DSCR loan to buy a vacation rental property near the Desert Hot Springs hot springs?
Yes. DSCR loans are designed for investment properties and qualify you based on the property’s expected rental income rather than your personal income. This makes them ideal for purchasing a property near the DHS hot springs district to operate as a short-term rental or boutique spa. No tax returns are required. We work with multiple DSCR lenders and can help you find competitive terms for your investment.
What is the conforming loan limit in Desert Hot Springs for 2026?
The 2026 conforming loan limit for Riverside County, which includes Desert Hot Springs, is $766,550 for a single-family home. Since DHS home prices typically range from $250,000 to $450,000, virtually all purchases in the city fall within the conforming limit. This means buyers can access conventional loan programs with competitive rates without needing jumbo financing.
Do you help first-time homebuyers in Desert Hot Springs with CalHFA programs?
Absolutely. CalHFA offers several programs that provide down payment and closing cost assistance, and Desert Hot Springs home prices fall well within CalHFA’s purchase price limits. We are experienced CalHFA-approved lenders and handle the additional documentation and coordination required by these programs. Many of our DHS clients combine CalHFA assistance with an FHA first mortgage to minimize out-of-pocket costs.
How long does it take to close on a home in Desert Hot Springs?
Our typical closing timeline is 25 to 35 days from accepted offer, which is faster than the national average of 45 days. CalHFA transactions may take slightly longer due to additional documentation requirements, but we manage the process closely to minimize delays. Getting pre-approved before you start shopping is the single best way to speed up your closing.
Serving All of the Coachella Valley
While our office is based in La Quinta, we proudly serve homebuyers and homeowners throughout the Coachella Valley and all of Southern California. Click below to learn about mortgage options in nearby communities:
Choice One Mortgage Company, Inc. | NMLS 233784 | CA DRE 01238593
Bill Lewis | NMLS 284797 | 78015 Main Street, Suite 201, La Quinta, CA 92253 | (310) 614-5920
Equal Housing Lender. Subject to credit and property approval. This is not a commitment to lend.