How Much Down Payment Do You Need in California?

I’m Michael DiVita (DRE #01372066 | NMLS #241655), owner of DiVita Home Finance (DRE #01818285 | NMLS #323700) in Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. I’m known as a creative mortgage broker: when a bank says no, I find the lender and the loan structure that can say yes. “How much do I need to put down?” is the first question almost every buyer asks me. Call (800) 239-1103.

You do not need 20% down to buy a home in California. The minimum is 0% with a VA or USDA loan, 3.5% with FHA, and 3% with a conventional loan — but the 3% option only works up to the $832,750 baseline loan amount. On larger “high-balance” conventional loans (up to $1,249,125 in the highest-cost counties) the minimum is 5%, and jumbo loans above that usually need 10%–20%. Down payment assistance and family gifts can cover part or all of what you need.

Minimum Down Payment by Loan Type (2026)

The California Catch: 3% Down Stops at $832,750

A lot of websites say you can buy with 3% down “up to $1,249,125” in high-cost counties. That’s not how it works. Fannie Mae’s 97% loan-to-value programs exclude high-balance loans and adjustable-rate mortgages, and Freddie Mac’s 97% programs are limited to standard conforming loan amounts too. In practice:

• 3% down works when the loan is $832,750 or less — a purchase price up to about $858,500 with roughly $25,750 down.
• 5% down is the minimum on a high-balance conventional loan. In a county at the $1,249,125 ceiling (Marin, San Francisco, San Mateo, Santa Clara, Alameda, Contra Costa, Los Angeles, Orange and others), that supports a purchase up to about $1,314,868.
• FHA’s 3.5% down applies all the way up to the county FHA limit, which is why FHA is often the lowest-down-payment option on a $900,000–$1.25 million California purchase for buyers who aren’t veterans.

County limits differ: San Diego is $1,104,000, Ventura $1,035,000, Sonoma $897,000, while Sacramento and Riverside counties are at the $832,750 baseline for conventional loans. I check your county before we write an offer.

The Four 3%-Down Conventional Programs

All four require a fixed-rate loan on a one-unit primary residence, and homebuyer education is required when every borrower is a first-time buyer. HomeReady and Home Possible come with reduced mortgage insurance coverage, which usually means a lower PMI premium. Fannie Mae no longer applies a hard 620 credit-score floor for loans run through its automated underwriting system (since November 2025), but most lenders still set their own minimum around 620. See my credit score guide for details.

What the Down Payment Looks Like in Real Dollars

California’s statewide median single-family price was $901,420 in August 2026, according to the California Association of Realtors. Here is the minimum cash for the down payment alone at different price points, assuming the loan fits within your county’s limits:

*Only in counties with a limit high enough to cover the loan (for example, the $1,249,125 counties).

Example: a $900,000 home

At $900,000 the loan is above $832,750 in every down payment scenario except 20% down, so 3% down is off the table. Your realistic options:

*30-year fixed at an illustrative 6.75% rate, before property tax, insurance and HOA dues. According to the California Association of Realtors, 30-year fixed rates averaged 6.67% in August 2026 and rose above 7% in early September. Your actual rate depends on credit, loan type and the day you lock.

Don’t forget closing costs on top of the down payment — often roughly 2%–3% of the price, or $18,000–$27,000 on a $900,000 home, before any seller or lender credits. My California closing cost guide breaks them down.

FHA Mortgage Insurance: The Real Numbers

FHA charges an upfront premium of 1.75% of the base loan, usually rolled into the loan, plus an annual premium paid monthly. For a 30-year loan with 3.5% down, the annual rate is 0.55% on base loans up to $726,200 and 0.75% above that. With less than 10% down, the annual premium stays for the life of the loan, so most FHA borrowers eventually refinance out of it once they have enough equity. With 10% or more down, it drops off after 11 years.

Help With the Down Payment

• CalHFA MyHome Assistance: a deferred-payment junior loan of up to 3.5% of the price with a CalHFA FHA first mortgage, or up to 3% with a CalHFA conventional first. First-time buyers, income limits, homebuyer education required. No monthly payment; repaid when you sell, refinance or pay off the first loan.
• CalHFA Dream For All: a shared appreciation loan of up to 20% of the price (capped at $150,000) for first-generation homebuyers. The 2026 application window ran February 24 – March 16, 2026, with a lottery for $150–$200 million in funding. See my Dream For All guide.
• GSFA Platinum: up to 5.5% of the first mortgage for down payment and/or closing costs, available statewide to first-time and repeat buyers with FHA, VA, USDA or conventional loans. Depending on the option you choose, it’s a repayable second loan, a deferred zero-interest second, or a mix of a second loan and a gift — not simply a free grant.
• Local programs: many cities and counties (including San Francisco and Marin) run their own programs with separate rules and waitlists.

Full details are on my California down payment assistance page.

Gift Funds From Family

On a one-unit primary residence, Fannie Mae allows the entire down payment, closing costs and even reserves to come from a gift — no minimum contribution from your own funds. FHA also allows gifts for the full down payment. Acceptable donors include relatives and, on Fannie Mae loans, a domestic partner, fiancé(e) or someone with a long-standing family-like relationship; FHA also allows gifts from an employer, labor union, close friend, charity or government program. The donor signs a gift letter stating the amount and that no repayment is expected, and we document the transfer (check and deposit, wire, or funds sent directly to escrow). More on my gift funds guide.

Is a Bigger Down Payment Always Better?

Reasons to put more down: a lower payment, less interest over time, no PMI at 20% down on a conventional loan, better pricing, and a stronger-looking offer.

Reasons to keep more cash: reserves for repairs and emergencies, money for moving and furnishing, and the ability to buy sooner rather than waiting years to save 20%. Conventional PMI is not forever: you can ask to cancel it once your balance reaches 80% of the original value, and it ends automatically at 78%. My PMI removal guide covers the details, including removal based on a new appraisal.

When the Down Payment Is the Problem: Creative Structures

When a bank says the numbers don’t work, I look at the structure before giving up:

• Piggyback second (80-10-10 and similar): a first mortgage kept at or under the conforming limit plus a second loan can avoid jumbo pricing or PMI.
• FHA instead of conventional on a $900,000–$1.25 million purchase, where 3.5% down beats the 5% high-balance minimum.
• Assistance plus gift layered on the right first mortgage.
• Jumbo lenders with lower down payment options for strong borrowers — see jumbo loans in California.

Frequently Asked Questions

What is the minimum down payment for a house in California in 2026?

0% with a VA or USDA loan, 3.5% with FHA (580+ credit score), 3% with a conventional loan up to $832,750, and 5% on a high-balance conventional loan up to your county limit (as high as $1,249,125). Jumbo loans above the county limit usually need 10%–20% down.

Can I put 3% down on a $1 million home in California?

Not with a conventional loan. 3% down is only available when the loan is $832,750 or less, so the maximum price is about $858,500. On a $1 million home, the minimum is typically 3.5% with FHA (in a county whose FHA limit covers the loan) or 5% with a high-balance conventional loan.

Do I need 20% down to buy a home in California?

No. 20% down avoids private mortgage insurance on a conventional loan, but it isn’t required. Most first-time buyers put down far less and remove PMI later once they reach 20% equity.

Can a family member give me the down payment?

Yes. On a one-unit primary home, Fannie Mae and FHA allow the entire down payment to come from an acceptable donor. You’ll need a signed gift letter stating the amount and that no repayment is expected, plus documentation of the transfer.

Can I buy a house in California with no money down?

Yes, if you’re eligible for a VA loan or buying in a USDA-eligible area. Other buyers can reduce out-of-pocket cash to near zero by combining an FHA or conventional loan with CalHFA MyHome, GSFA Platinum, local assistance, or gift funds, though closing costs still need to be covered.

How much should I budget beyond the down payment?

Plan for closing costs of roughly 2%–3% of the price, prepaid property taxes and insurance, and a cushion of reserves. Seller credits and lender credits can reduce what you bring to closing.