4 min read
The '20% down' idea is the biggest myth in home buying. Most buyers put down far less, and in Southern California, assistance programs can cover much of it. Here's what you actually need.
Minimums by loan type
VA loans: $0 down for eligible veterans and service members. FHA: as little as 3.5% down with a 580 score. Conventional: as low as 3% for qualified first-time buyers. USDA: $0 down in eligible rural areas. Jumbo loans typically need more.
The trade-off with less down
Putting less down means a bigger loan and, on many programs, mortgage insurance until you reach ~20% equity. That's often worth it to buy sooner — and conventional mortgage insurance drops off automatically as your equity grows.
Down payment assistance in California
Statewide (CalHFA MyHome, Dream For All, GSFA Platinum) and local programs (LA City, LA County, Inland Empire) can provide grants or deferred loans toward your down payment and closing costs — often the difference between renting and owning.
Frequently asked questions
- Is it better to put 20% down?
- It avoids mortgage insurance and lowers your payment, but it's rarely required. For many buyers, buying sooner with less down — especially with assistance — beats waiting years to save 20%.
- Can down payment assistance cover my whole down payment?
- Sometimes. Some California programs can cover most or all of the down payment and part of closing costs, depending on your income and the program. We'll check what you qualify for.
This guide is general educational information, not financial advice or a commitment to lend. Programs, rates, and requirements change. Confirm your specifics with a licensed loan officer. Equal Housing Lender · NMLS #856170.