A quick, straight answer to a question buyers and sellers ask me often.
Real-world down payment minimums
The 20% rule is a myth for most buyers. Conventional loans can start around 3% down for qualified borrowers; FHA loans typically require 3.5%; and eligible veterans and service members may qualify for VA loans with no down payment. Putting less down means a smaller upfront cost but a larger loan and, on most loans under 20%, mortgage insurance — which adds to the monthly payment until you reach enough equity (on conventional loans). The best choice depends on your savings, your budget, and how long you plan to stay.
Explore the programs in our California down payment assistance guide, and if FHA fits your situation, see the FHA buyer guide for California.
Frequently Asked Questions
Do I need 20% down to buy a home?
No. Many buyers put down far less — as little as 3% on conventional loans, 3.5% on FHA, or 0% on VA loans for eligible borrowers. Down-payment assistance may reduce the upfront cost further.
What is the trade-off of a smaller down payment?
A smaller down payment means a larger loan and usually mortgage insurance (PMI on conventional loans under 20%, or FHA mortgage insurance premiums), which raises your monthly cost. You also build equity more slowly at first.
Are there down-payment assistance programs in California?
Yes. California offers various programs that can help with down payment and closing costs for eligible buyers. Availability and terms change, so check current options and confirm eligibility.
