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Low Down Payment Home Loans in California

Buy a Home With Less Money Up Front

Low down payment home loans can make homeownership possible sooner than many buyers expect.

Qualified California homebuyers may be able to purchase a primary residence with as little as 3% or 3.5% down. Eligible veterans, service members and rural homebuyers may qualify for a mortgage with no required down payment.

Mojave River Mortgage helps buyers compare conventional, FHA, VA, USDA and down payment assistance programs to find an appropriate combination of upfront cost, monthly payment and long-term expense.

You may not need to wait until you have saved 20% of the purchase price.

How Much Down Payment Do You Really Need?

The traditional 20% down payment is not required for every mortgage. Your minimum down payment depends on the loan program, property, occupancy, income, credit, available assets and underwriting approval.

Potential options include:

  • Conventional home loans with as little as 3% down
  • FHA home loans with as little as 3.5% down
  • VA home loans with no VA-required down payment for eligible borrowers
  • USDA home loans with no down payment for qualified buyers and eligible properties
  • Down payment assistance that may reduce your personal cash requirement
  • Gift funds from an eligible donor
  • Seller credits toward eligible closing costs

A smaller down payment preserves cash, but it can also affect mortgage insurance, interest rate, monthly payment and total loan cost. The lowest down payment is not automatically the least expensive option.

Conventional Home Loans With 3% Down

Qualified buyers may be able to purchase a primary residence using a conventional mortgage with as little as 3% down.

Potential conventional options include:

Fannie Mae HomeReady

HomeReady may provide eligible income-qualified borrowers with:

  • A down payment as low as 3%
  • Flexible eligible sources for down payment and closing funds
  • Potential use of eligible rental or boarder income
  • Reduced mortgage-insurance requirements in certain situations
  • Homeownership-education resources

Income, occupancy, property and underwriting requirements apply.

Freddie Mac Home Possible

Home Possible is designed for eligible low- and moderate-income borrowers and may offer:

  • A down payment as low as 3%
  • Flexible sources of funds
  • Conventional mortgage financing
  • Cancellable mortgage insurance under applicable requirements
  • Homebuyer-education resources

Income and property eligibility requirements apply.

Freddie Mac HomeOne

HomeOne may provide qualified first-time homebuyers with a down payment as low as 3%, without the geographic or borrower-income limits associated with some other affordable conventional programs.

First-time homebuyer, property, occupancy and underwriting requirements apply.

Private mortgage insurance is generally required when a conventional mortgage exceeds 80% of the property’s value. Mortgage insurance protects the lender—not the borrower—and increases the monthly payment.

[Button: Compare 3% Down Conventional Loans]

FHA Home Loans With 3.5% Down

FHA loans may allow qualified borrowers to purchase a home with a down payment as low as 3.5%.

FHA financing can be helpful for buyers who have:

  • Limited savings
  • A lower credit score
  • Higher debt-to-income ratios
  • Gift funds from an eligible donor
  • Down payment assistance
  • A need for more flexible underwriting

FHA loans are not restricted to first-time homebuyers.

Borrowers pay FHA mortgage insurance, including an upfront mortgage-insurance premium and an annual premium generally collected