I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. Call (800) 239-1103.
The $900,000 home is increasingly common across California — it’s around the median price in the East Bay, parts of Los Angeles, and San Diego. If you’re targeting this price range, the down payment question is more nuanced than most articles let on. The minimum you can put down is not 20%. Here’s the complete breakdown.
Minimum Down Payment Options on a $900,000 California Home
| Loan Type | Minimum Down Payment | Down Payment Amount | Loan Amount | Key Requirement |
|---|---|---|---|---|
| VA Loan | 0% | $0 | $900,000 | Veteran / active-duty only |
| Conventional 5% | 5% | $45,000 | $855,000 | 620+ credit score |
| Conventional 10% | 10% | $90,000 | $810,000 | Best rate tier starts here |
| FHA Loan | 3.5% | $31,500 | $868,500 | Available in high-cost CA counties; 580+ credit score |
| Conventional 20% | 20% | $180,000 | $720,000 | No PMI; best rates |
| Jumbo Loan | 10–20% | $90,000–$180,000 | Varies | 720+ credit; needed only if above county conforming limit |
Important note: In 2026, the conforming loan limit for most California high-cost counties is $1,209,750 or higher. This means a $900,000 purchase is fully within conventional (non-jumbo) loan territory in the Bay Area, LA, and San Diego — giving you access to Fannie Mae and Freddie Mac guidelines with as little as 3–5% down.
What You’ll Need in Cash at Closing
The down payment is only part of what you need at closing. California buyers also pay closing costs, which typically run 2–3% of the purchase price:
| Scenario | Down Payment | Estimated Closing Costs | Total Cash at Closing |
|---|---|---|---|
| VA Loan (0% down) | $0 | $12,000–$18,000 | $12,000–$18,000 |
| FHA (3.5% down) | $31,500 | $18,000–$27,000 | $49,500–$58,500 |
| Conventional 5% down | $45,000 | $18,000–$27,000 | $63,000–$72,000 |
| Conventional 10% down | $90,000 | $18,000–$27,000 | $108,000–$117,000 |
| Conventional 20% down | $180,000 | $18,000–$27,000 | $198,000–$207,000 |
Closing costs include lender fees, title insurance, escrow fees, prepaid property taxes, and homeowners insurance. Seller concessions can offset some of these.
Monthly Payment Comparison: Down Payment Size Matters
How much you put down dramatically affects your monthly payment. Here’s a side-by-side comparison on a $900,000 purchase at 6.5% (30-year fixed):
| Down Payment | Loan Amount | P&I Payment | PMI (est.) | Tax + Insurance | Total Monthly |
|---|---|---|---|---|---|
| $0 (VA) | $900,000 | $5,696 | $0 | ~$1,000 | ~$6,700 |
| $31,500 (3.5% FHA) | $868,500 | $5,497 | ~$195/mo MIP | ~$1,000 | ~$6,700 |
| $45,000 (5%) | $855,000 | $5,414 | ~$230/mo | ~$1,000 | ~$6,650 |
| $90,000 (10%) | $810,000 | $5,124 | ~$180/mo | ~$1,000 | ~$6,300 |
| $180,000 (20%) | $720,000 | $4,553 | $0 | ~$1,000 | ~$5,550 |
The difference between 5% down and 20% down is about $1,100/month — or $13,200 per year. Whether that savings justifies putting up an additional $135,000 depends on your investment alternatives and how quickly you expect to build equity.
Income Required for a $900K Home in California
| Down Payment | Loan Amount | Total Monthly | Income Needed (36% DTI) | Income Needed (43% DTI) |
|---|---|---|---|---|
| 5% ($45K) | $855,000 | ~$6,650 | ~$221,000/yr | ~$185,000/yr |
| 10% ($90K) | $810,000 | ~$6,300 | ~$210,000/yr | ~$176,000/yr |
| 20% ($180K) | $720,000 | ~$5,550 | ~$185,000/yr | ~$155,000/yr |
Ways to Reduce the Down Payment on a $900K Home
CalHFA Down Payment Assistance: California’s CalHFA MyHome program provides a junior loan of up to 3.5% of the purchase price — that’s $31,500 on a $900K home — to cover the down payment. It’s a deferred loan with no monthly payment; you repay it when you sell, refinance, or pay off the first mortgage. Income limits apply and vary by county.
CalHFA Dream For All Shared Appreciation Loan: When available, the Dream For All loan provides up to 20% of the purchase price (up to $150,000 in most rounds) in exchange for CalHFA receiving the same percentage of future appreciation. Demand is very high; these programs open in limited lottery rounds.
Gift Funds from Family: All conventional, FHA, and VA loans allow gift funds from a qualifying family member. The donor must provide a gift letter confirming no repayment is expected, and the funds must be documented.
VA Loan (Zero Down for Veterans): If you served in the military, the VA loan requires no down payment on any loan amount. On a $900,000 purchase, a VA loan saves you $45,000–$180,000 in upfront cash. There’s no PMI, and VA rates are typically 0.25–0.5% below conventional rates. Learn more about VA loans in California.
Frequently Asked Questions
How much down payment do I need for a $900,000 house in California?
The minimum down payment depends on the loan type. With a VA loan (veterans only), you can put 0% down. With FHA, the minimum is 3.5% ($31,500). With conventional financing, the minimum is 3–5% ($27,000–$45,000). Most $900K buyers in California put down 10–20% to lower their monthly payment and avoid or reduce PMI, but minimum requirements are much lower for eligible buyers.
Is a $900,000 home a jumbo loan in California?
In most California counties, no. The 2026 conforming loan limit in high-cost areas like Los Angeles, the Bay Area, and San Diego is $1,209,750 or higher. Since the loan amount on a $900,000 home is below that threshold in most scenarios (e.g., $810,000 with 10% down), it qualifies for conventional financing — not jumbo. This means more flexible qualifying standards and often better rates.
What income do I need to afford a $900,000 home in California?
With 10% down, a $900,000 home carries a total monthly payment of approximately $6,300. At a 36% front-end DTI, you’d need about $210,000/year in gross household income. At 43% DTI (with minimal other debt), you could potentially qualify with approximately $176,000/year. These are household income figures — two earners of $100K each would typically qualify.
Should I put 10% or 20% down on a $900K California home?
The 10% vs. 20% decision comes down to cash flow vs. monthly savings. Putting 20% down saves approximately $1,100/month compared to 10% down, but requires an additional $90,000 in upfront cash. If that $90,000 would otherwise sit in low-yield savings, paying it as down payment often makes sense. If it can be invested at a higher return than your mortgage rate, keeping it liquid may be smarter. Call DiVita Home Finance to model both scenarios for your specific situation.
→ California Down Payment Guide by Loan Type | California Closing Costs 2026 | VA Loans California
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DiVita Home Finance | Tiburon, CA | Licensed since 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
