October 2026
One of the biggest myths in real estate is that you need 20% down to buy a home. With rates higher this fall, choosing the right down payment strategy matters more than ever. Here are the most common options California buyers are using in 2026.
Conventional loans — as little as 3% to 5% down. First-time buyers can qualify for 3% down programs. Put less than 20% down and you will pay private mortgage insurance (PMI), which can be removed once you reach enough equity.
FHA loans — 3.5% down. Flexible on credit scores and debt, which makes them popular with first-time buyers. FHA mortgage insurance stays longer, so compare the total monthly cost.
VA loans — 0% down. For eligible veterans, active-duty service members and some surviving spouses. No monthly mortgage insurance, and VA loans can be assumed by a future buyer — a real advantage when rates are high.
USDA loans — 0% down. Available for eligible homes in qualifying rural areas, including parts of Kern, Riverside, San Bernardino and San Luis Obispo counties, with income limits.
California down payment assistance. The California Housing Finance Agency (CalHFA) offers first-time buyer programs that can help with the down payment and closing costs, and many cities and counties run their own grants or deferred-payment loans. Funding and rules change, so check current availability before you shop.
Gift funds. Family members can gift money toward your down payment on most loan types with a simple gift letter.
Seller credits. In today's market many sellers will cover part of your closing costs, freeing your cash for the down payment.
Jumbo loans. For luxury purchases above the conforming limit, many lenders require 10% to 20% down, with some programs lower for strong borrowers.
Which is right for you depends on your savings, credit, and how long you plan to stay. Schedule a consult and I will walk you through your options and introduce you to lenders who specialize in each program.