✦ Key Takeaways
- Minimum down payment: As low as 3% for conventional, 3.5% for FHA
- Jumbo loans: Typically require 10–20% down in Southern California
- 20% myth: You do NOT need 20% down — that's optional (avoids PMI)
- Down payment assistance: Multiple California programs available for first-time buyers
- PHR rebate: 1% cash back at closing can supplement your down payment or cover closing costs
How Much Down Payment Do You Actually Need?
The short answer: much less than most people think. Here's a breakdown by loan type:
| Loan Type | Min. Down Payment | Best For | PMI Required? |
|---|---|---|---|
| Conventional | 3% | Strong credit, stable income | Yes (until 20%) |
| FHA | 3.5% | Credit score 580+ | Yes (lifetime) |
| VA | 0% | Military veterans | No |
| USDA | 0% | Rural areas (limited in SoCal) | No |
| Jumbo | 10–20% | Loans above $1.1M in CA | Varies |
Down Payment by Purchase Price in Southern California
| Purchase Price | 3% Down | 5% Down | 10% Down | 20% Down |
|---|---|---|---|---|
| $700,000 | $21,000 | $35,000 | $70,000 | $140,000 |
| $900,000 | $27,000 | $45,000 | $90,000 | $180,000 |
| $1,200,000 | N/A (Jumbo) | N/A | $120,000 | $240,000 |
| $2,000,000 | N/A (Jumbo) | N/A | $200,000 | $400,000 |
Down Payment Assistance Programs in California
- CalHFA MyHome Assistance Program: Deferred-payment junior loan for down payment and closing costs
- CalHFA Dream For All: Shared appreciation program for first-time buyers (limited funding)
- LA County Neighborhood Lift: Up to $25,000 in down payment assistance
- City of Los Angeles LIPA: Income-restricted down payment assistance
Eligibility varies. Income limits, purchase price caps, and residency requirements apply. Our mortgage partner iLoanCA can walk you through which programs you qualify for.
How Portfolio Home Realty's Rebate Helps
Your 1% cash back from PHR can be structured to supplement your down payment situation:
- Closing cost offset: Most commonly, the rebate covers closing costs — freeing up more of your savings for the down payment
- Rate buydown: Apply the rebate as a mortgage rate buydown, reducing your monthly payment permanently
- Cash at closing: Take it as cash and put it toward anything you need
Mike Basti founded Portfolio Home Realty to give Southern California buyers what they deserve — full-service expert representation and real money back at closing. Licensed California broker serving LA County and Orange County.
Bottom Line
You don't need 20% down to buy a home in Southern California — and Portfolio Home Realty's 1% rebate can help cover closing costs so more of your savings go toward the down payment. Get pre-qualified first →
Find out how much you need
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