Learn how much you really need for a down payment in California. This 2025 guide explains FHA, VA, Conventional, and first-time homebuyer assistance programs for Fresno and the Central Valley.
How Much Do You Need for a Down Payment in California? (2025 Guide)
If you’re thinking about buying a home in California, one of the biggest questions you probably have is:
“How much do I actually need for a down payment?”
The truth is: you don’t need 20% down, and most buyers—especially first-time buyers—purchase their homes with much less. As a Central Valley Realtor who works closely with new buyers, this guide explains exactly what you need, what loan programs offer, and how much to expect in 2025.
The Myth of the 20% Down Payment
Many people believe you need 20% down because:
But it is not required.
Most California buyers today put down:
You can absolutely buy a home in Fresno or Clovis with far less than 20%.
Down Payment Requirements by Loan Type
Let’s break down each loan program available in California.
1. FHA Loan — 3.5% Down
One of the most popular options for first-time buyers.
Requirements:
Example: Home price: $350,000
Down payment: $12,250
2. Conventional Loan — 3% to 5% Down
Great for buyers with slightly higher credit scores.
Requirements:
Example: Home price: $400,000
Down payment (3%): $12,000
3. VA Loan (Military) — 0% Down
For active-duty, veterans, and eligible spouses.
Benefits:
If you qualify, it is one of the best programs in California.
4. USDA Loan — 0% Down (Rural Areas)
Available in certain areas around Madera, outskirts of Fresno, and rural communities.
California Down Payment Assistance Programs (CalHFA)
California offers some of the best down payment assistance programs in the country.
Most Popular Programs
1. CalHFA Dream for All (if relaunched)Helps with a shared appreciation loan.
2. CalHFA MyHome Assistance Program Offers up to 3.5% of the purchase price for down payment or closing costs.
3. CalPLUS with ZIP Assistance Gives buyers a zero-interest loan for closing costs.
These programs can reduce your out-of-pocket cost to almost nothing, depending on eligibility.
How Much Should You Save for Other Costs?
Besides the down payment, buyers should prepare for:
1. Closing Costs
Typically 2%–3% of the purchase price.
2. Earnest Money Deposit
Usually 1% of the price, but applied toward your purchase—not extra.
3. Inspection Fee
$400–$550 on average in Fresno.
4. Appraisal Fee
$500–$700 depending on the property.
5. Moving Costs
Varies by situation.
Down Payment Examples for Fresno, CA
Here’s what down payments look like based on local home prices.
Home Price | FHA (3.5%) | Conventional (3%) | 5% |
|---|---|---|---|
$350,000 | $12,250 | $10,500 | $17,500 |
$400,000 | $14,000 | $12,000 | $20,000 |
$450,000 | $15,750 | $13,500 | $22,500 |
Most first-time buyers in Fresno purchase in the $320–$420k range, making down payments very achievable.
How to Choose the Best Loan for You
Your best option depends on:
As your agent, I walk you through each option and connect you with trusted lenders who specialize in helping first-time buyers.
Final Thoughts — You Don’t Need 20% to Buy
You can absolutely buy a home in California—even with a lower down payment. Whether you’re putting 3%, 5%, or using down payment assistance, homeownership in Fresno is more achievable than most people think.
If you're thinking about buying in Fresno or the Central Valley, contact me today. I’ll explain your loan options, connect you with trusted lenders, and help you find a home that fits your budget and goals.
Keep reading other bits of knowledge from our team.
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