When you apply for a mortgage loan in California, you'll be asked for a variety…
Down Payment Information for California Home Buyers
We’ve written about down payments in California many times in the past. On this page, you’ll find links to some of our best articles relating to mortgage loan down payment requirements, guidelines, minimum required investments, and related topics.
At a glance: Down payment requirements vary based on the type and size of the loan you’re using. Conventional loans offer down payments as low as 3% for some borrowers. The FHA loan program requires 3.5% down. VA loans (available to military members and veterans) offer 100% financing with no down payment whatsoever. Borrowers can often use gift money from a third party to put toward their investment.
Down Payment Articles on Our Blog
Note: If you have a question that’s not featured below, be sure to use the search tool located above. Our blog contains several hundred articles geared toward home buyers in California. So you’re bound to find the information you seek.
California Down Payment Requirements
This article is a great place to start, because it gives you a general overview of the down payment requirements for California home buyers. It covers all of the major types of mortgage loans and programs, including FHA, VA and conventional financing. You could start with this article, and then explore the other topics below as needed.
Down Payment vs. Closing Costs
First-time home buyers in California sometimes confuse the down payment with closing costs, and vice versa. The truth is they are not directly connected in any way. But they can both add up to a significant sum of money, which is why you should start saving money early on in the home buying process.
Average Down Payment on a House
The average down payment for a home purchase in California can change from year to year, mainly due to fluctuations in home prices. Additionally, different mortgage programs require different investments. So it can vary. In this article, we will take a look at the current average down payment amount for several key thresholds.
Average Down Payment in the Bay Area
The San Francisco Bay Area has some of the highest home prices in the state of California. As a result, buyers in this region typically have to invest more money up front when purchasing a home or condo. This guide shows how much you might have to put down in the Bay Area, based on current home prices in 2024.
Why Some Borrowers Put 20% Down
You’ve probably heard about the 20% down payment for a home purchase. While this type of investment is not always required, many home buyers choose to put 20% down. They do this for several reasons, including to avoid paying private mortgage insurance. In this article, we will explain why some people choose to make an investment of 20% when buying a house.
How It Affects Mortgage Insurance
If you choose to make a smaller down payment when buying a house in California, you will probably have to pay for some type of mortgage insurance. This is true for conventional loans, as well as government-backed mortgage programs like FHA. In this article, we will examine the relationship between down payments and private mortgage insurance (PMI), as it relates to you as a home buyer.
Can I Buy a House With 5% Down?
Many of our past clients have asked if they can buy a house in California with just 5% down. This is a common question among first-time buyers in particular, who often lack the funds needed for a larger down payment. The short answer is yes, it’s possible to buy a house with an investment of 5% (or even less). This article explores the topic in more detail.
FHA Down Payment Requirements
The Federal Housing Administration (FHA) loan program allows home buyers in California to purchase a house with as little as 3.5% down. In this article, we will explore some of the basic requirements that have to be met, in order to qualify for this relatively low investment threshold.
Low Down Payment Options
Budget-minded home buyers with limited funds in the bank often look for ways to minimize the upfront costs associated with a home purchase. This article explains some of the low down payment options that are available for borrowers in California. The key takeaway is that eligible borrowers can buy a house with as little as 3% down, using a conventional loan. FHA loans also allow for a relatively small investment.
Have a Question About Down Payments?
The articles above have been provided to help you learn more about the basic down payment requirements in California. If you have additional questions that are not covered above, or if you would like to apply for a loan, please contact our staff.
Located in the San Francisco Bay area, Bridgepoint Funding serves borrowers all across the Golden State. We can answer any down payment questions you might have, and also pre-qualify you for a mortgage loan. We look forward to hearing from you!
