Monday, March 10, 2025 / by Bob Cowan
Top Mortgage Programs with Low Down Payments in California for 2025
Buying a home in California can be challenging due to rising property prices. However, low down payment mortgage programs can help make homeownership more accessible. Whether you're a first-time buyer or looking to upgrade, here are some of the best low down payment mortgage programs available in California in 2025.
FHA Loans
The Federal Housing Administration (FHA) loan program remains one of the most popular options for low down payment mortgages.
Down Payment Requirement: 3.5%
Credit Score Requirement: 580 or higher (500-579 may qualify with a 10% down payment)
Benefits: Flexible credit guidelines, allows higher debt-to-income ratios
Best For: First-time homebuyers and those with less-than-perfect credit
CalHFA (California Housing Finance Agency) Programs
CalHFA offers several assistance programs to help Californians afford a home.
MyHome Assistance Program: Provides a deferred-payment junior loan of up to 3.5% of the purchase price to cover the down payment.
CalPLUS Conventional Loan: Offers a 3% down payment with the option of assistance to cover closing costs.
Credit Score Requirement: 660 or higher (varies by program)
Best For: Low-to-moderate income homebuyers needing down payment or closing cost assistance.
Conventional 97 Loan
Conventional 97 Loan
The Conventional 97 program is backed by Fannie Mae and offers a low down payment option without the need for government insurance.
Down Payment Requirement: 3%
Down Payment Requirement: 3%
Credit Score Requirement: 620 or higher
Benefits: Lower private mortgage insurance (PMI) costs compared to FHA
Best For: Buyers with good credit seeking lower monthly payments
VA Loans
VA Loans
Veterans, active-duty service members, and eligible spouses can access VA loans with no down payment required.
Down Payment Requirement: 0%
Credit Score Requirement: Varies by lender (typically 620 or higher)
Benefits: No private mortgage insurance (PMI), competitive interest rates
Best For: Military personnel and veterans
USDA Loans
USDA Loans
The U.S. Department of Agriculture (USDA) offers zero-down loans for eligible rural and suburban homebuyers.
Down Payment Requirement: 0%
Credit Score Requirement: 640 or higher (varies by lender)
Benefits: No down payment, reduced mortgage insurance costs
Best For: Buyers in eligible rural areas with moderate incomes
Bank-Specific Low Down Payment Programs
Steps to Prepare for HomeownershipBank-Specific Low Down Payment Programs
Many California-based and national lenders offer their own low down payment options, including first-time buyer incentives and closing cost assistance.
Down Payment Requirement: Varies (as low as 1% in some cases)
Credit Score Requirement: Varies by lender
Benefits: Tailored solutions, additional grants and incentives
Best For: Buyers willing to shop around for exclusive lender offers
1. Check Your Credit Score: Aim for a credit score of at least 580 for FHA loans or 620 for conventional loans to increase your chances of approval.
2. Start Saving for a Down Payment: Begin putting money aside early, even a small down payment can make a big difference when purchasing a home.
3. Get Pre-Approved: Pre-approval helps determine your budget and accelerates the home buying process.
4. Explore Assistance Programs: Look into local, state, and federal programs that can provide financial help for down payments or closing costs.
5. Take a Homebuyer Education Course: Many assistance programs require this course, which also offers valuable insights for first-time buyers.
6. Prepare for Extra Costs: Consider additional expenses such as property taxes, homeowners insurance, and any HOA fees that might apply.
7. Choose an Experienced Lender: Work with a lender who specializes in low down payment and first-time buyer programs for expert guidance.
Understanding the California real estate market in 2025 becomes easier with these low down payment mortgage programs. Each program is designed to meet different buyer needs, so take the time to explore your options and consult a mortgage expert to find the right solution for you. Your path to homeownership could be closer than you think!
Turn Your Homeownership Dreams into Reality
Understanding the California real estate market in 2025 becomes easier with these low down payment mortgage programs. Each program is designed to meet different buyer needs, so take the time to explore your options and consult a mortgage expert to find the right solution for you. Your path to homeownership could be closer than you think!
Turn Your Homeownership Dreams into Reality
