You do not need 20% down to buy a home in California. FHA loans start at 3.5% down. Conventional loans can go as low as 3%. VA loans for veterans require zero down payment at all. On a $700,000 home in Temecula, that means you could potentially get into a home for as little as $24,500 down — and there are local assistance programs that can help cover even that.
Here's the full picture.
The 20% myth
The idea that you need 20% down is one of the most common reasons people put off buying longer than they need to. It's just not true.
Twenty percent became the gold standard because it's the threshold where you avoid Private Mortgage Insurance (PMI) on a conventional loan. But avoiding PMI isn't always worth waiting years to accumulate that much cash — especially in Southern California, where home values have historically gone up. Sometimes the math says: buy now, pay PMI for a few years, build equity, then get rid of it.
Minimum down payment by loan type
FHA Loan: 3.5% down — available with a 580+ credit score. On a $700,000 home, that's $24,500.
Conventional Loan: 3–5% down — first-time buyers can sometimes access 3% down programs. Otherwise, 5% is the common starting point. Better credit = better terms.
VA Loan: 0% down — if you're a veteran, active duty military, or surviving spouse of someone who served, you may qualify. Zero down, no PMI, competitive rates. VA loans are genuinely one of the best loan products available to anyone.
USDA Loan: 0% down — for rural and some suburban areas. Parts of Riverside County qualify. Income limits apply.
Jumbo Loans: typically 10–20% down — for loans above the conforming limit ($766,550 in Riverside County for 2026).
Down payment assistance in Riverside County
This is the part most buyers don't know about. There are down payment assistance programs in Riverside County right now offering up to $100,000 with 0% interest and deferred payments. You don't make payments on it while you live in the home — and after a set number of years, the assistance converts to a grant.
CalHFA (California Housing Finance Agency) also has statewide programs that can help cover down payment and closing costs.
These programs have income limits and first-time buyer requirements, but more people qualify than you'd think. I check every client's eligibility before we discuss anything else.
So what's the right down payment for you?
Honestly, it depends on several things working together:
How much cash do you have available — and is it in a form you can actually use for a down payment? (Some retirement accounts have restrictions.)
What loan type do you qualify for — and does your credit and income point you toward FHA, conventional, or VA?
How does your monthly payment look with different down payment amounts — and does the PMI cost change the math in a meaningful way?
How long do you plan to stay in the home — because a lower down payment might be totally worth it if you're going to be there 10+ years and build equity.
I can run all of these scenarios side by side so you can make the call with real numbers, not guesses.
You probably need less than you think
The first step is finding out where you actually stand — not where you assume you stand. A lot of people are surprised to find out they're closer to ready than they thought.