You Don't Need 20% Down — The Myth Holding Buyers Back

Many first-time buyers in California are waiting to save a 20% down payment — but that may be unnecessary and costing them more in the long run.

One of the biggest reasons first-time buyers stay on the sidelines in California isn't income — it's a stubborn myth about down payments. Many people believe they need to put 20% down before they can even think about buying a home. In a state where the median home price exceeds $800,000 in many markets, that misconception alone is keeping thousands of qualified buyers from ever getting started.

Here's the reality: there are loan programs available today that allow qualified buyers to purchase with as little as 3% down. FHA loans require just 3.5%. VA loans for eligible veterans require zero down. California also has down payment assistance programs that can bridge the gap for first-time buyers who meet income guidelines.

Yes, putting less than 20% down typically means paying private mortgage insurance (PMI) — but in many cases, the cost of PMI is far less than continuing to rent while home values and rates remain unpredictable.

The bottom line: don't let an outdated assumption about down payments keep you from building equity and long-term wealth through homeownership.

Not sure what you actually need to buy your first home in California? Reach out to us today — we'll walk you through your real options with no pressure and no guesswork.