Low Down Payment Options: How Little You Can Really Put Down in California

The biggest myth in home buying is that you need 20% down. You don't. Depending on the loan, you can buy a California home with nothing down, 3.5% down, 5%, 10%, or 15% — each with its own trade-offs. Here's a plain-language map of every low-down path and who each one fits.

Quick answer

You do not need 20% down to buy in California. VA loans allow 0% for eligible veterans, FHA needs 3.5%, and conventional loans start at 3% with Conventional 97, HomeReady, or Home Possible — or 5% on a standard conventional loan. Putting 10% down opens an 80/10/10 'piggyback' that skips PMI, jumbo loans above the 2026 limit of $832,750, and physician programs. Specialized loans like ITIN, bank-statement, and DSCR typically ask for 15–20%. The right amount depends on the program you qualify for, not a one-size rule.

What you'll learn

The real minimum down payment for VA, FHA, and conventional loans
How Conventional 97, HomeReady, and Home Possible get you in with 3% down
What 10% down unlocks — piggybacks, jumbos, and physician loans
Which specialized programs ask for 15–20% and why
How to put less down and still avoid mortgage insurance
How to figure out which low-down path fits your situation

How little can you really put down?

There's no single down payment rule — it depends entirely on the loan program you qualify for. Some buyers put nothing down; others put 15% or 20% because their program asks for it. Here's the short version, lowest to highest:

0% down — VA loans, for eligible veterans and service members.
3.5% down — FHA loans, the most popular low-credit-friendly path.
3–5% down — conventional loans, including first-time-buyer programs.
10% down — conventional move-up purchases, jumbo loans, physician loans, and piggyback structures.
15–20% down — specialized programs like ITIN, bank-statement, and DSCR loans.

The goal isn't to put down as little as possible — it's to put down the amount that fits your savings, your monthly budget, and the program you qualify for.

0% to 5% down: the lowest-entry paths

If your savings are thin, these programs get you in the door with the least cash up front:

VA loans — 0% down for eligible veterans, active-duty service members, and many surviving spouses, with no monthly mortgage insurance. If you've served, this is almost always the strongest option.
FHA loans — 3.5% down with a credit score of 580 or higher. FHA is forgiving on credit and debt, which makes it the go-to for many first-time buyers.
Conventional 97, HomeReady, and Home Possible — 3% down. Conventional 97 is the standard 3%-down conventional loan. HomeReady (Fannie Mae) and Home Possible (Freddie Mac) are income-based versions that often come with reduced PMI when your income is at or below the area limit — we run all three and use whichever is cheapest for you.
Standard conventional — 5% down. The everyday conventional loan when you don't fit a 3%-down program. PMI applies, but unlike FHA it cancels automatically once you reach about 20% equity.

All four conventional 3%–5% options carry PMI that can fall off later — a key difference from FHA, where the mortgage insurance often stays for the life of the loan.

10% down: more options than people think

Ten percent is a sweet spot. It's still well under 20%, but it opens doors that 3–5% doesn't:

Conventional 90% — a clean 10%-down loan, common for move-up buyers and second homes.
80/10/10 'piggyback' — an 80% first mortgage plus a 10% second, with 10% down, structured specifically to avoid PMI entirely.
Jumbo loans — for homes above the 2026 conforming limit of $832,750 (up to $1,249,125 in high-cost California counties), many lenders accept 10% down for strong-credit borrowers.
Physician loans — doctors and dentists can often put 10% or less down with no PMI, even on higher loan amounts.

If avoiding mortgage insurance matters to you, the 80/10/10 piggyback is worth asking about — it's a way to put 10% down and skip PMI from day one.

15% to 20% down: specialized programs

Some loans serve buyers a standard lender can't, and they offset that flexibility with a larger down payment. These commonly land in the 15–20% range:

ITIN loans — for buyers who file taxes with an ITIN instead of a Social Security number. The traditional ITIN loan usually asks for 15%, and in many cases 20%, down.
Bank-statement loans — for self-employed buyers who qualify on deposits instead of tax returns; often 10–15% down with strong credit, 20% otherwise.
DSCR investor loans — qualified on the property's rent rather than your personal income; typically 20% down, occasionally 15% for the strongest files.

If you're an ITIN buyer who isn't ready for 15–20% down yet, ask about the Earned Equity program — an alternative path to ownership we can explain in Spanish.

Putting less down and still avoiding mortgage insurance

Mortgage insurance protects the lender, not you, so most buyers want to minimize or avoid it. Your options:

Go conventional and cancel PMI later — once you reach 20% equity through payments or appreciation, you can request that PMI be removed.
Use an 80/10/10 piggyback — skip PMI entirely with just 10% down by splitting the financing.
Choose a program without monthly insurance — VA loans and physician loans don't carry monthly mortgage insurance even with little down.

FHA loans are the exception — their mortgage insurance (MIP) usually stays for the life of the loan, which is often why buyers refinance out of FHA later.

Which low-down path fits you?

The best down payment is the one that matches your situation, not the smallest number you can find. A quick way to think about it: if you've served in the military, start with VA. If your credit is still recovering, FHA. If you have solid credit and want to avoid PMI, look at conventional or a piggyback. If you're self-employed or file with an ITIN, a specialized program is your lane. The fastest way to know for sure is a short conversation — Miguel will tell you exactly which programs you qualify for and what each one costs per month, in English or Spanish.

Key takeaways

20% down is optional, not required — most buyers put down far less.
0% (VA) and 3.5% (FHA) are the lowest-entry paths; conventional starts at 3–5%.
10% down opens piggyback structures, jumbo loans, and physician programs.
ITIN, bank-statement, and DSCR loans usually want 15–20% down.
A bigger down payment lowers your payment and can remove mortgage insurance — but keeping cash in reserve has value too.

Common questions

Do I really not need 20% down?

Correct — 20% is not required. It's just the point where you avoid PMI on a conventional loan. Most buyers in California put down far less, using VA (0%), FHA (3.5%), or conventional (3–5%) programs.

What's the lowest down payment available?

Zero, through a VA loan, if you're an eligible veteran or service member. After that, FHA at 3.5% and conventional at 3–5% are the lowest-entry paths for most buyers.

How can I put 10% down and still avoid PMI?

An 80/10/10 'piggyback' does exactly that: an 80% first mortgage, a 10% second mortgage, and 10% down. Because no single loan is above 80% of the price, there's no PMI. Physician loans and VA loans also skip monthly mortgage insurance.

Why do ITIN and bank-statement loans need more down?

They serve buyers who don't fit standard guidelines — ITIN filers, the self-employed, investors — so lenders offset that flexibility with a larger down payment, usually 15–20%. The trade-off is access to financing you couldn't get otherwise.

Is a bigger down payment always better?

Not always. More down means a lower payment and less or no mortgage insurance, but draining your savings can leave you exposed. The right balance keeps a healthy cash reserve while putting down enough to reach a comfortable payment. We'll run both scenarios with you.