How much down payment do I need?

Q: How much down payment do I need?

Many buyers do not need a 20% down payment. Depending on the loan program, down payments can be as low as 3% to 5% for conventional loans or around 3.5% for FHA loans. Some buyers may also qualify for assistance programs that help reduce upfront costs.

Written by Armando Novelo, NMLS 237243, mortgage loan officer in West Covina, CA with 20+ years helping Southern California homebuyers.

Clear, real answers for California homebuyers

You don’t need a 20% down payment to buy a house.

That’s one of the biggest misconceptions we see.

Many buyers in California are getting into homes with much less, depending on the loan program they use and how their situation is structured.

How Much Is a Typical Down Payment?

The amount you need depends on the type of loan you’re using.

Here are some common ranges:

Conventional loans: as low as 3% to 5% down

FHA loans: typically around 3.5% down

Some programs can help reduce how much you need upfront.

The right option depends on your full financial picture.

Why Most Buyers Don’t Put 20% Down

Putting 20% down can help avoid mortgage insurance, but it’s not required.

In fact, most buyers choose a lower down payment so they can:

Keep more money in savings

Get into a home sooner

Use their funds more strategically

It’s more about how everything is structured than hitting a specific percentage..

What We See With Buyers in the San Gabriel Valley

In areas like West Covina, Baldwin Park, and Covina, many buyers come in thinking they need a large amount saved.

But once we go through their options, they realize they can move forward with much less by using the right loan and, in some cases, combining it with assistance programs.

What Actually Affects Your Down Payment

Your required down payment can change based on:

Your credit profile

The loan program you qualify for

The price of the home

Whether you’re using assistance

Two buyers purchasing similar homes can end up putting down very different amounts depending on how everything is set up.

Can You Get Help With the Down Payment?

Yes, some buyers qualify for programs that can help cover part of their down payment.

These programs vary depending on location, income, and other factors, but they can make a big difference in how much you need upfront.

If you’re still figuring things out, that’s completely normal. The first step is just understanding what’s possible based on your situation.

Use our contact page to request a no-pressure strategy call with Armando and talk through your options together.

Links

Armando Novelo

NMLS 237243

Super Mortgage Bros

1900 W. Garvey Ave S. #100

West Covina, CA 91790

Phone: (626) 200-1838

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