There’s no single number, and the range is bigger than most first-time buyers expect.
Conventional Loans Often Allow as Little as 3-5%
Many conventional loan programs allow down payments as low as 3-5% for qualified buyers, though putting down less than 20% typically means paying private mortgage insurance (PMI) until you build enough equity.
FHA Loans Allow 3.5% With More Flexible Credit Requirements
FHA loans are designed for buyers with less-than-perfect credit or a smaller down payment, requiring as little as 3.5% down, though they come with their own mortgage insurance requirements and loan limits that vary by county.
Jumbo Loans Often Require More
Once a loan amount exceeds the conforming loan limit for the county, which is common in higher-priced parts of Los Angeles, you’re often in jumbo loan territory. Jumbo loans frequently require a larger down payment, sometimes 10-20% or more, and stricter reserve and credit requirements.
20% Down Avoids PMI But Isn’t Required
Putting 20% down avoids private mortgage insurance and can make your offer look stronger to a seller, but it isn’t a requirement, and plenty of buyers successfully purchase with less.
Don’t Forget Closing Costs on Top
Whatever you’re saving for a down payment, budget separately for closing costs, typically a few percent of the purchase price on top of your down payment, plus a reserve for moving and immediate repairs.
If you want to figure out realistically what you’d need to save for a specific price range, get in touch and Efrat can walk you through the numbers.