The down payment is the part that scares most first-time buyers — usually because they think they need 20%. The truth is much friendlier. Here's how much you actually need in 2026.
The real minimums by loan type
| Loan | Minimum down | On a $450,000 home |
|---|---|---|
| FHA | 3.5% | ~$15,750 |
| Conventional (first-time) | 3% | ~$13,500 |
| VA (veterans/military) | $0 | $0 |
| USDA (eligible rural areas) | $0 | $0 |
| Conventional (no PMI) | 20% | $90,000 |
You don't need 20%
Putting 20% down lets you skip mortgage insurance, but most first-time buyers don't do it — and don't need to. Mortgage insurance is a manageable monthly cost, and getting into a home sooner often beats waiting years to save 20%.
Down payment assistance can cover most of it
In California, programs like CalHFA Dream For All, MyHome, and GSFA can cover much of your down payment — sometimes nearly all of it when stacked with an FHA loan. That's how families with modest savings still become homeowners.
What counts as a down payment
Your savings, gift funds from family (with a simple gift letter), and assistance programs all count. Lenders just want to see where the money came from — so keep records and avoid large, unexplained deposits in the months before you apply.
See the programs that help at detuladocasas.com/en/programs, and the full home-buying steps at detuladocasas.com/en/steps-to-buying-a-house. Then text Sal to run your real numbers for Palmdale, Lancaster, and the Antelope Valley.
Frequently Asked Questions
How much down payment do you need to buy a house?+
You usually don't need 20%. FHA loans require 3.5% down, conventional loans can be as low as 3% for first-time buyers, and VA and USDA loans allow $0 down. Down payment assistance programs can cover part or all of it.
Do you really need 20% down?+
No. 20% down lets you avoid mortgage insurance, but the vast majority of first-time buyers put down far less. Many buy with 3–3.5%, and some with $0 down through VA, USDA, or down payment assistance.
What is the minimum down payment on a $450,000 house?+
With FHA at 3.5%, that's about $15,750. With a 3% conventional loan, about $13,500. With VA or USDA, $0. Down payment assistance can reduce your out-of-pocket cost even further.
What counts toward a down payment?+
Your savings, gift funds from family (with a gift letter), and down payment assistance programs. Lenders want to see where the money came from, so keep records and avoid large unexplained deposits before applying.
Questions? We're Here.
Talk to Sal — Hablamos Espanol
Bilingual real estate agent serving Palmdale, Lancaster, Quartz Hill, and all of Antelope Valley. No pressure, no jargon.