How Much Money Do I Really Need for a Down Payment?
Some loan programs may allow as little as 0% to 3.5% of the purchase price as a down payment, though the actual amount depends on the loan program, your eligibility, and the property.
FHA Loans
Typically require a minimum of 3.5% down for borrowers with a credit score of 580 or higher — these are common benchmarks and may vary by lender. As a general example, on a home priced around $520,000, that would be approximately $18,200.
Conventional Loans
May allow as low as 3% down for qualified first-time buyers, though 5-10% is more common. The exact requirement depends on the lender and your credit profile.
VA Loans
Available to eligible veterans, active-duty service members, and surviving spouses, and may allow zero down payment.
Down Payment Assistance
CalHFA MyHome provides up to 3.5% of the purchase price as a deferred second loan with no monthly payments. GSFA Platinum offers up to 5.5% and is available to both first-time and repeat buyers. Program availability, terms, and income limits change periodically and should be verified with a current lender.
Closing Costs
Beyond the down payment, closing costs typically range from approximately 2-5% of the purchase price, depending on your loan type, lender, and location. These figures are general guidelines and actual costs may differ. To see the full picture, See What Buying Really Costs vs. Renting
Local Context
Home prices vary across the East Bay and North Bay markets Eduardo serves. A home in San Pablo requires a smaller down payment dollar-for-dollar than one in Walnut Creek or Pleasanton.
Disclaimer: Figures above are general educational estimates. Actual loan terms depend on your specific lender, credit profile, loan program, property type, and current conditions.
Helpful Resources
Let's Explore Your Options
Every buyer's situation is different. If you want to understand what programs you may qualify for, contact me or visit my First-Time Buyer Hub.
No pressure, just good information.