You can buy a home in Simi Valley with as little as 0-3.5% down in 2026. VA loans allow 0% down for eligible veterans, FHA loans require 3.5%, and some conventional loans go as low as 3%. Putting 20% down lets you skip private mortgage insurance. On a $780,000 median Simi Valley home, that means a minimum of roughly $0-$27,000 with a low-down-payment loan, or about $156,000 for the full 20%.
Down payment by loan type
The most common question I get from Simi Valley buyers is some version of 'how much do I actually need?' The answer depends entirely on the loan, and the spread is wide. Here is how the main loan types compare on a $780,000 median home.
VA loans are the standout for eligible veterans and active-duty service members, requiring no down payment at all and no monthly mortgage insurance. FHA loans are the workhorse for first-time buyers without 20% saved. Conventional loans offer the widest range, from 3% down for some programs up to 20% or more, with mortgage insurance dropping off once you reach 20% equity.
| Loan type | Minimum down % | Down payment on $780K home | Mortgage insurance? |
|---|---|---|---|
| VA (eligible veterans) | 0% | $0 | No |
| Conventional (low-down programs) | 3% | ~$23,400 | Yes, until 20% equity |
| FHA | 3.5% | ~$27,300 | Yes (FHA mortgage insurance) |
| Conventional (20% down) | 20% | $156,000 | No |
The PMI question
Private mortgage insurance, or PMI, is the cost of putting down less than 20% on a conventional loan. It protects the lender, not you, and it typically adds somewhere in the range of $100-$350+ per month on a Simi Valley-priced home, depending on your credit and down payment size.
The good news with conventional PMI is that it is not permanent. As you pay down the loan and the home appreciates, you can request removal once you reach 20% equity, and it drops automatically at 22%. FHA mortgage insurance works differently and often stays for the life of the loan unless you refinance. My take: do not let PMI scare you out of buying. A few hundred dollars a month is often a reasonable price for getting into the market years sooner instead of saving toward a moving 20% target.
Closing costs come on top of the down payment
The down payment is not the only cash you need at the closing table, and buyers who budget only for the down payment get an unwelcome surprise. Closing costs are separate.
On a Simi Valley purchase, plan for closing costs in the range of roughly 2-4% of the purchase price. That covers lender fees, the appraisal, title and escrow charges, prepaid property taxes and insurance, and loan-related items. On a $780,000 home that is roughly $15,000-$31,000 on top of your down payment. The good news: closing costs are negotiable. In the right market conditions a seller can be asked to credit some or all of them, and certain loan programs and assistance options can help cover them too.
Down-payment assistance in Simi Valley
California offers several down-payment and closing-cost assistance programs aimed at qualifying buyers, often first-time buyers within certain income limits. These can take the form of deferred loans or other structures that reduce the cash you bring to closing.
Program availability, funding, and eligibility rules change frequently, so the right move is to talk to a lender who actively works with these programs in Ventura County. Not every lender does, and the difference between a lender who knows the assistance landscape and one who does not can be tens of thousands of dollars in upfront cash. I am glad to point Simi Valley buyers toward lenders who handle these programs regularly.
What I tell first-time buyers
The biggest myth I hear in Simi Valley is that you need 20% down to buy. You do not. The vast majority of first-time buyers I work with put down far less, and that is completely normal and completely fine.
Here is how I frame the decision. If you qualify for a VA loan, use it; zero down with no mortgage insurance is hard to beat. If you do not, the real question is not 'how do I save 20%' but 'what gets me into a home I can comfortably afford, sooner, without overextending.' Sometimes that is 3.5% down with FHA. Sometimes it is 5-10% down on a conventional loan to keep PMI lower. What matters is the monthly payment you can carry and the cash cushion you keep afterward. Do not drain every account to hit 20%. Buy a home you can live in and still handle a surprise. Let's get you pre-approved and find the down payment number that actually fits your life.
Frequently Asked Questions
What is the minimum down payment to buy a home in Simi Valley?
As little as 0% with a VA loan for eligible veterans, 3.5% with FHA, or 3% with some conventional programs. On a $780,000 median home that is roughly $0-$27,000.
Do you need 20% down to buy in Simi Valley?
No. Twenty percent lets you avoid PMI, but most first-time buyers put down far less using FHA, VA, or low-down conventional loans. Twenty percent on a $780K home is about $156,000.
How much is PMI in Simi Valley?
Private mortgage insurance on a conventional loan typically adds around $100-$350+ per month on a Simi Valley-priced home, and it can be removed once you reach 20% equity.
How much are closing costs in Simi Valley?
Closing costs generally run about 2-4% of the purchase price, roughly $15,000-$31,000 on a $780,000 home, and are separate from your down payment.
Is there down payment assistance for Simi Valley buyers?
Yes. California offers down-payment and closing-cost assistance programs for qualifying buyers. Work with a lender who actively handles these programs, since rules and funding change often.
