The minimum down payment in the Conejo Valley depends entirely on your loan type, not the property. VA loans require zero down. FHA requires 3.5%. Conventional starts at 3%-5% for primary residences. On a $1M home that means cash to close ranges from $0 (VA, plus closing costs) to $35K (FHA) to $50K (5% conventional) all the way up to $200K (20% conventional). Each path comes with trade-offs in monthly payment, PMI, and seller appeal.
Minimum down by loan type
Five common loan paths cover the vast majority of Conejo Valley purchases. Each has its own minimum down, mortgage insurance treatment, and qualification rules.
| Loan Type | Min Down | PMI/MIP | On $1M Home |
|---|---|---|---|
| VA (veterans) | 0% | None | $0 |
| USDA (rural) | 0% | Annual fee | Not in most Conejo |
| FHA | 3.5% | Permanent MIP | $35,000 |
| Conventional 97 | 3% | PMI until 78% LTV | $30,000 |
| Conventional 5% | 5% | PMI until 78% LTV | $50,000 |
| Conventional 10% | 10% | PMI until 78% LTV | $100,000 |
| Conventional 20% | 20% | None | $200,000 |
| Jumbo (above $1.21M) | 10-20% | Varies | $120K-$240K |
What lower down payment costs you monthly
On a $1M Conejo home at 6.5%, the monthly principal-and-interest at 5% down is about $6,003. At 20% down it's $5,056. The $200K extra down payment saves you $947/month in P&I, plus eliminates roughly $250-$400/month of PMI - call it $1,200-$1,350 in total monthly savings.
Math check: that's roughly a 7%-8% return on the extra $150K of down payment you'd put in beyond 5%. If your cash could earn more than that elsewhere (it usually can't in safe assets right now), keep the cash. Otherwise, 20% down is a strong move.
FHA's mortgage insurance is permanent for the life of the loan unless you refinance out of it. That's a real cost to weigh - FHA makes sense when you have limited cash, not when you have 10%+ available.
Down payment and offer competitiveness
In multi-offer situations in the Conejo Valley, sellers do weigh down payment percentage. A 20% down conventional offer typically beats a same-price 3.5% FHA offer because FHA appraisal standards are stricter and risk of appraisal-gap issues is higher.
That doesn't mean low-down-payment buyers can't win - they can, especially in listings that have sat 14+ days. But strategy matters. I coach low-down buyers to compensate with shorter contingency periods, larger earnest money, or appraisal-gap coverage where feasible.
VA loans deserve a special note: they used to scare sellers because of strict appraisals. The reality in 2026 is that VA appraisals are similar to FHA, and the VA buyer is often a strong borrower. I push back when listing agents try to dismiss VA offers.
Where down payment money can come from
Lenders accept down payment from several sources: your own savings (most common), gift funds from family (documented with a gift letter), proceeds from a prior home sale, 401(k) loans against retirement (with caveats), and certain employer down-payment assistance programs.
Gift funds need a 60-day paper trail and a letter from the donor confirming the funds aren't a loan. For Conejo Valley purchases above $1M, expect lenders to want unusually thorough documentation if any portion is gifted.
CalHFA down payment assistance exists but income caps and price caps usually exclude most of the Conejo Valley. Worth a 15-minute check if you're below $150K household income.
Closing costs are not the same as down payment
California closing costs typically run 2%-3% of the purchase price - on a $1M Conejo home that's $20,000-$30,000 over and above your down payment. Lenders also collect first-year reserves for property tax and insurance, usually another $15,000-$20,000 at signing.
So a 20% down purchase of a $1M Conejo home really needs $235,000-$250,000 of liquid cash at closing - not just the $200K down. Plan accordingly, or negotiate seller credits for closing costs as part of the offer.
Seller-paid closing cost credits are common in the Conejo Valley when properties have sat or when buyers have leverage. I negotiate these regularly - they can make a tight budget work without changing the loan structure.
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