Do you need 20% down?

In a high cost area like Southern California saving for a down payment is a huge part of buying a house. It can take years to save up a 20% down payment. Luckily there are other loan options available to you!

If you're a veteran you can take advantage of the VA loan and purchase a home with zero money down. For everyone else there are FHA and conventional loans. The minimum down payment for a FHA loan is ony 3.5% and the minimum down payment for a conventional loan is 5%. 

FHA and conventional loans with less than 20% down require mortgage insurance, but it can still be a better option for most buyers. Buyers are able to purchase a home now instead of waiting years to save enough for a 20% down payment. The home you purchase now will likely appreciate in value and build you equity during the time it would have taken to save for a larger down payment. 

The newest option for first-time home buyers is the California dream for all shared appreciation loan. This program assists buyers with a 20% down payment if they qualify. Upon the sell or transfer of the home, the buyer repays the original down payment loan, plus a share of the appreciated value of the home. The first round of funding was distributed very quickly in early 2023, but a second round of funding has been approved and we anticipate a release date in early Spring of 2024. 

If you want more information about your loan options please give me a call or text at 760-465-2858. 

Contact Frank Goody

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Watch more of Frank's videos

Do you need 20% down to purchase a home?
How much do you need to save for your down payment?
When should you talk to a Realtor?
How far in advance to your home purchase should you start talking to a Realtor?
When should you speak with a lender?
A common mistake made by first time homebuyers is they wait too long to speak with a lender.
How contingencies protect home buyers.
There are 3 main contingencies in a purchase agreement that protect home buyers.


Frank did an incredible job with us as we were first time home buyers and were very new to the process and how it all worked. He was calm, patient, answered our myriad of questions and was able to help us navigate the market to purchase our first home. He was very responsive, proactive, and really made us feel valued. We would give him six out of five stars if possible and would definitely recommend.
Bridgit M.
Frank was very patient and supportive during the search process for my home. He was optimistic and diligent during the home buying process. I would recommend him in a heartbeat.
Diana H.
623 Properties
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