How Much Down Payment Do I Need in California? 2026 Guide by Loan Type

I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. Call (800) 239-1103.

One of the first questions California home buyers ask is: how much do I need for a down payment? The answer depends on your loan type, credit score, and the purchase price — but in California’s high-cost market, knowing your options can save you tens of thousands of dollars.

Minimum Down Payments by Loan Type

There is no single minimum down payment in California. Each loan program has its own requirement:

California Down Payment in Real Numbers

California’s median home price in 2026 is roughly $850,000, which means even a “low” down payment represents a significant sum. Here’s what the numbers look like across different price points:

• $500,000 home: 3.5% FHA = $17,500 | 5% conventional = $25,000
• $750,000 home: 3.5% FHA = $26,250 | 5% conventional = $37,500
• $1,000,000 home: FHA may still be available in high-cost counties | 10% jumbo = $100,000

Bay Area buyers in Marin County ($1,249,125 limit), San Francisco ($1,249,125), and Alameda/Contra Costa ($1,209,750) benefit from California’s high conforming loan limits — meaning FHA and conventional financing extend to much higher price points than the national baseline of $832,750.

CalHFA Down Payment Assistance: Get Help With the Down Payment

If saving a full down payment feels out of reach, the California Housing Finance Agency (CalHFA) offers programs that can cover your entire down payment and closing costs — often at zero percent interest.

The two main CalHFA assistance programs in 2026:

• MyHome Assistance Program: A deferred-payment junior loan up to 3.5% of the purchase price, used for down payment or closing costs. No payments until you sell, refinance, or pay off the first mortgage.
• Dream For All Shared Appreciation Loan: Up to 20% of the purchase price as a down payment loan. In exchange, CalHFA receives a percentage of the home’s appreciation when you sell. Highly competitive — applications are processed via lottery when funded.

CalHFA programs stack on top of FHA, conventional, and VA loans. Income limits and purchase price caps apply and vary by county.

Does a Bigger Down Payment Always Make Sense?

Not necessarily. Here’s the trade-off in California’s market:

Benefits of a larger down payment

• Lower monthly payment and less interest over the life of the loan
• Eliminates Private Mortgage Insurance (PMI) if you put 20% down on a conventional loan
• Stronger offer in a competitive market — sellers prefer buyers who appear more financially stable

Reasons to keep your down payment smaller

• Preserves cash for reserves, repairs, and emergencies after closing
• California home prices have historically appreciated — getting in sooner with 3–5% can outperform waiting to save 20%
• PMI on FHA loans costs approximately 0.85% annually — on a $600,000 loan that’s roughly $425/month, but you can refinance out of it once you reach 20% equity

Down Payment Gifting Rules

Family members can gift funds for your down payment. FHA and conventional loans allow 100% of the down payment to come from a gift, provided you have a gift letter documenting that no repayment is required. The donor must show the ability to give the funds (bank statement) and the transfer must be traceable.

Don’t Forget Closing Costs

In California, closing costs typically run 2% to 3% of the purchase price on top of your down payment. On a $700,000 home, that’s an additional $14,000 to $21,000. Factor this into your savings plan. Strategies to reduce closing costs include seller concessions, lender credits, and CalHFA assistance programs that can apply to both down payment and closing costs.

Frequently Asked Questions

Related Resources

• California Down Payment Assistance Programs 2026
• First-Time Homebuyer Programs California 2026
• FHA Loans California — 3.5% Down
• 2026 Conforming Loan Limits California
• Closing Costs in California 2026