How Much Down Payment Do You Need to Buy a Home in California?
Learn the real down payment requirements for buying a home in California. FHA, VA, Conventional, and first-time buyer programs explained with clear examples.
California Home Down Payment Requirements — 0% to 20% Options Explained
Buying a home in California starts with one critical question: “How much down payment do I need?” The answer might surprise you — California home buyers can purchase with as little as 0% to 3% down, depending on the loan program, credit score, and property type.
This complete guide covers California down payment requirements for every major loan type, including conventional loans, FHA loans, VA loans, jumbo mortgages, and California down payment assistance programs.
What Is a Down Payment on a California Home?
A down payment is the upfront cash you pay toward your California home purchase. The mortgage loan covers the remaining balance.
California Down Payment Example:
- Home price: $700,000 (median California home price range)
- 3% down payment: $21,000
- 10% down payment: $70,000
- 20% down payment: $140,000
Important: Most California home buyers do not put down 20%. The majority of California buyers put down between 3% and 10%, depending on their chosen loan program.
California Down Payment Requirements by Loan Type
Conventional Loan Down Payment California — 3% to 5% Minimum
Conventional loans are the most common California mortgage type, backed by Fannie Mae and Freddie Mac.
Minimum down payment:
- 3% down — First-time California home buyers
- 5% down — Repeat California home buyers
- 20% down — Avoids private mortgage insurance (PMI), not required
Best for:
- California buyers with good to excellent credit (620+ credit score)
- Buyers seeking competitive California mortgage rates
- Flexibility in loan amounts and property types
FHA Loan Down Payment California — 3.5% Minimum
FHA loans are extremely popular among California first-time home buyers due to flexible credit requirements and low down payment options.
Minimum down payment:
- 3.5% down with 580+ credit score
- 10% down with 500-579 credit score
Best for:
- California first-time home buyers
- Buyers with lower credit scores (580-620 range)
- Higher debt-to-income ratios accepted
- Smaller down payment savings
FHA loans are one of the easiest California home loans to qualify for, making them ideal for entry-level California buyers.
VA Loan Down Payment California — 0% Down
VA loans offer the best financing option for eligible California veterans, active-duty military, and qualifying spouses.
Minimum down payment:
- 0% down payment required
Additional VA loan benefits:
- No private mortgage insurance (PMI)
- Lower California VA loan rates
- Flexible credit requirements
- No prepayment penalties
Best for:
- California veterans and active-duty military
- Eligible military spouses
- Buyers seeking maximum purchasing power with zero down payment
If you qualify for a California VA loan, this should be your first option.
California Jumbo Loan Down Payment — 10% to 20%
California’s high home prices mean many buyers need jumbo loans, especially in Los Angeles, Orange County, San Diego, Bay Area, and other high-cost California markets.
Typical down payment:
- 10% down — Many California jumbo lenders now offer this option
- 20% down — Traditional jumbo loan standard
Jumbo loan limits in California (2025):
- Most California counties: Loans exceeding $806,500
- High-cost areas (LA, OC, Bay Area): Loans exceeding $1,209,750
Best for:
- High-income California buyers
- Luxury California real estate
- Excellent credit profiles (typically 700+)
- High-value California homes
At Finance West Lending, we offer low-down-payment California jumbo programs that traditional banks often don’t provide.
California Down Payment Assistance Programs — 0% to 3% Down
California offers multiple down payment assistance programs to help buyers reduce upfront costs.
California down payment assistance options:
CalHFA Down Payment Assistance
- Up to 3.5% of purchase price assistance
- Available statewide in California
- Income and purchase price limits apply
California First-Time Home Buyer Programs
- Grant programs offering $5,000-$20,000+
- Forgivable second mortgages
- County-specific California programs
MyHome Assistance Program
- Up to $15,000 California down payment assistance
- Available in select California counties
Best for:
- California first-time home buyers
- Low to moderate-income California buyers
- Buyers with limited down payment savings
These California assistance programs can reduce your required down payment to 0% to 1% in many cases.
How Much Down Payment Do California Buyers Actually Make?
Based on current California home buying trends:
- California first-time buyers: 3%-5% down
- California move-up buyers: 5%-10% down
- High-income California buyers: 10%-20% down
- California VA buyers: 0% down
- California jumbo borrowers: 10%-20% down
Key insight: Very few California home buyers put down 20%, and even fewer wait years to reach that threshold.
What’s the Best Down Payment Amount for California Home Buyers?
Your ideal California down payment depends on your financial goals:
Want the lowest monthly payment?
- Put down more to reduce loan amount and monthly costs
Want the lowest upfront cost?
- Use 3% conventional or 3.5% FHA California loan
Want to compete in California’s competitive market?
- Larger down payments strengthen offers, but aren’t mandatory
Want flexibility and cash reserves?
- Put down the minimum required and keep cash for emergencies, repairs, or renovations
There’s no universal “right” California down payment — only what works best for your situation.
How Finance West Lending Helps California Buyers Maximize Down Payment Options
At Finance West Lending, we help California home buyers find the lowest down payment option while securing the best financing terms:
✓ Compare all California loan programs you qualify for side-by-side
✓ Find down payment assistance programs banks often overlook
✓ Offer creative solutions for self-employed California buyers
✓ Provide fast California pre-approvals with no hard credit pull
✓ Shop multiple lenders to find your best California mortgage rate
We ensure you use the most efficient down payment strategy for your California home purchase.
California Down Payment FAQs
What is the minimum down payment to buy a house in California?
The minimum California down payment is 0% with a VA loan for eligible veterans and military. For conventional and FHA loans, California buyers can purchase with 3% to 3.5% down.
Do I need 20% down to buy a home in California?
No. Most California home buyers put down 3%-10%. Putting 20% down avoids PMI but is not required for California home purchases.
Can first-time home buyers in California get down payment assistance?
Yes. California offers multiple down payment assistance programs, including CalHFA, MyHome, and county-specific programs that can reduce down payment requirements to 0%-1%.
What credit score do I need for a 3% down payment in California?
For conventional California loans with 3% down, you typically need a 620+ credit score. FHA California loans with 3.5% down accept credit scores as low as 580.
Are California down payments higher than other states?
California down payment percentages are similar to other states, but dollar amounts are higher due to California’s elevated home prices. A 3% down payment on a $700,000 California home is $21,000.
Can I buy a California home with no money down?
Yes, if you qualify for a California VA loan (0% down for veterans/military) or certain California down payment assistance programs that cover 100% of down payment costs.
Do jumbo loans in California require 20% down?
Not always. Many California jumbo lenders now accept 10% down payment, though 20% down typically offers better rates and terms.
Find Your Exact California Down Payment Requirement
Every California home buyer has different down payment options based on credit, income, property type, and loan program.
Get your personalized California down payment analysis in under 2 minutes:
Start Your California Pre-Approval — No Credit Impact →
No hard credit pull. No pressure. Just clarity on your California home buying options.
Finance West Lending | California Mortgage Experts
Helping California home buyers secure the best down payment options and competitive rates statewide.
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