The Truth: You Don’t Need 20% Down
Many first-time buyers qualify with far less:
FHA: 3.5% down with credit scores of 580 or higher.
Conventional (first-time buyer): As little as 3% down with strong credit.
VA: 0% down for eligible veterans and active-duty service members.
Down-payment assistance: State, county, city, and lender programs can cover part of your down payment or closing costs.
What the Numbers Look Like (2025 Estimates)
To make the percentages real, here are simple examples based on early-2025 median prices:
Los Angeles County — median price about $850,000.
At 3.5% down (FHA): $29,750.
At 5% down (conventional): $42,500.
San Diego County — median price about $875,000.
At 3.5% down (FHA): $30,625.
At 5% down (conventional): $43,750.
Orange County — median price about $940,000.
At 3.5% down (FHA): $32,900.
At 5% down (conventional): $47,000.
Riverside County — median price about $620,000.
At 3.5% down (FHA): $21,700.
At 5% down (conventional): $31,000.
San Bernardino County — median price about $540,000.
At 3.5% down (FHA): $18,900.
At 5% down (conventional): $27,000.Source: early-2025 Redfin and local market data.
Help You Can UseCalHFA MyHome Assistance — up to 3.5% of the purchase price as a deferred-payment second.
CalHFA ZIP — up to 3% toward closing costs, paired with CalHFA’s first mortgage.
Lender grants — select lenders offer grants; eligibility and amounts vary.
Typical Qualification Guidelines
Program rules differ, but most look for:
• First-time buyer status (no ownership in the past 3 years).
• A minimum credit score (often 640+ for assistance programs).
• Stable income and employment.
• Household income within local limits for assistance eligibility.
The Bottom Line
You don’t need perfect credit or a 20% down payment to buy a home in Southern California. With the right loan program—and possibly assistance—you may be closer than you think.
Call or text:
Nicole Stockmoe — 619-540-0559
Glenn Siaumau — 562-999-6347
Email: nicole@s2mortgage.com | glenn@s2mortgage.com
Website: www.S2Mortgage.com
One Favor
If any of your friends, family, or coworkers are thinking about buying, selling, or refinancing, can we count on you to connect us in a quick two-way text? That’s how we continue to serve our community.