“I don’t have 20% to put down.”
How much do I need to put down on a house?
Less than you may think. A big down payment is a common goal, not a rule. Some home loans start with a much smaller down payment, and gift money from family can sometimes help. Less down can mean mortgage insurance and a higher payment. A loan officer shows you both ways side by side before you decide.
Quick answers
Saving forever for a big down payment?
You may not need it. Some loans start much lower.
Worried about mortgage insurance?
It can come with a smaller down payment. Your loan officer shows you the payment with it and without it.
Family wants to help?
Gift money can often count. Ask how it works on your loan.
Does it fit you?
3 quick questions. No signup. No credit pull.
What you'll need
- Recent pay stubs or other proof of income
- Two months of bank statements
- A photo ID
- A rough idea of your price range
How does it go, start to finish?
Which loans start with a small down payment?
A few kinds. Your loan officer checks which ones you qualify for.
- FHA loans. Government-insured, and often easier on credit.
- Conventional loans with a low down payment.
- HomeReady and Home Possible, conventional loans for buyers with moderate income.
- VA loans, for eligible veterans and service members.
What does a smaller down payment cost?
Usually mortgage insurance. It protects the lender, and it adds to your payment.
On a conventional loan, it can come off once you have enough equity. On an FHA loan with a small down payment, it usually stays unless you refinance. Your loan officer shows you the payment with it and without it.
Can family help?
Often, yes. On many loans, gift money from family can go toward the down payment. Talk to your loan officer before the money moves, so the paper trail is clean.
Questions people ask
What is mortgage insurance?
It protects the lender when the down payment is small. It adds to your payment. On some loans it can come off later.
Is a smaller down payment a bad idea?
Not always. It can get you into a home sooner. It also means a bigger loan, and often mortgage insurance. Your loan officer shows you the payment with it and without it.
How much cash do I need to close?
Your down payment plus closing costs. Gift money or a seller credit can cover part of it. A loan officer adds it up in dollars before you make an offer, and your Loan Estimate lists every cost within three business days of applying.
Is an FHA loan only for first-time buyers?
No. FHA loans are for anyone buying a home to live in.
What are HomeReady and Home Possible?
Conventional loans from Fannie Mae and Freddie Mac for buyers with moderate income. They can start with a small down payment. Income limits apply.
Do you offer down payment assistance programs?
No. We don’t offer state or city down payment assistance programs. Gift money from family can help, and some loans start with a small down payment.
Does Home First Financial offer low down payment loans in California?
Yes. Home First Financial arranges FHA loans and conventional loans with a small down payment across California. Subject to qualification.
Talk to a loan officer
Call or email a licensed loan officer.
The application takes about 15 minutes, on the secure site we use. Do what you can, and your loan officer calls to fill in the rest.
Prefer to meet in person? Our main office is in Tustin, by appointment.
The fine print
Down payment, mortgage insurance and rate depend on the loan, your credit and the property. Subject to qualification. Not a commitment to lend.
Also called: FHA loans, or conventional loans like HomeReady and Home Possible.
Home First Financial is not affiliated with HUD, FHA, VA, USDA, CalHFA or any government agency.
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