You probably don't need 20% down. Here's what you actually need.

You do not need 20%. Eligible first-time buyers commonly buy with 3% down on a conventional loan (Fannie Mae HomeReady, Freddie Mac Home Possible, or a standard 97% LTV loan) or 3.5% down on an FHA loan with a credit score of 580 or higher. Down payment assistance can cover part or all of that down payment for buyers who qualify. Twenty percent down avoids mortgage insurance, but it is not a requirement to buy.

On a $650,000 home, that's the difference between saving $130,000 (20%) and $19,500–$22,750 (3%–3.5%) — before assistance. Try the estimator above with your own price.

It is possible in specific situations, and it is the range Daniel's first-home page describes for clients who have used low-down-payment paths. The pattern is usually: a lower-priced home or condo, assistance covering the down payment, a small required buyer contribution (several city and county programs require about 1% of the price from the buyer's own funds), and seller or lender credits helping with closing costs.

The honest limits: it is not typical at every price point, it depends on the program's current funding, and it is never guaranteed. Most buyers should budget for their contribution plus closing costs, and confirm their real cash-to-close figure with a lender before they start touring.

On a conventional loan, private mortgage insurance (PMI) is generally required below 20% down and can typically be removed once you reach about 20% equity. FHA loans charge mortgage insurance premiums (MIP) instead, which work differently and often last for the life of the loan at minimum down payment. Avoiding mortgage insurance is a real benefit of a larger down payment — but for many LA buyers, waiting to save 20% costs more in rent and price movement than PMI ever would. That's a math conversation, not a rule.

Closing costs are the fees and prepaids charged to complete the purchase, separate from the down payment: lender origination and processing fees, appraisal, credit report, title insurance, escrow fees, recording charges, and prepaid property taxes and homeowners insurance.

As a planning estimate in California, buyers often budget roughly 2% to 5% of the purchase price, though the real figure varies by price, lender, loan type, and property. Some assistance can be applied to closing costs, and seller credits negotiated in your offer can offset part of them. Your lender's Loan Estimate — which you receive early in the process — replaces every estimate on this page.

Down payment assistance (DPA) is a second loan, grant, or forgivable loan from a state, county, city, or authority program that helps cover your down payment and sometimes closing costs. Most of it is not free money: deferred second loans are typically repaid when you sell, refinance, or transfer the home, and several Los Angeles programs also share in the home's appreciation. A smaller number of options are grants or loans forgiven after a set period. The terms — not the headline amount — are what matter.

The main ones, compared in the table above: CalHFA MyHome (statewide, up to 3.5% FHA / 3% conventional), GSFA Platinum (statewide, up to 5%, not limited to first-time buyers), City of LA LIPA (up to $161,000) and MIPA (up to $115,000) for homes inside city limits, and LA County HOP80/HOP150 (up to $100,000) outside city limits. CalHFA Dream For All (up to 20%, capped at $150,000) is real but its 2026 application window closed March 16, 2026 — watch CalHFA for a future round rather than planning around it today.

Sometimes, but not in every combination. City of Los Angeles programs (LIPA/MIPA) and LA County's HOP can never combine on the same home — they cover different geography. CalHFA states MyHome cannot be combined with Dream For All. Other combinations depend on both programs' written rules and the lender's participation. Any stack has to be verified by a participating lender before you rely on it — see how stacking works.

Usually yes, on the program's terms. The city (LIPA/MIPA), county (HOP), and CalHFA MyHome loans have no monthly payments, but the balance comes due when you sell, transfer title, repay the first mortgage, or reach the end of the term — and the city and county programs also take a share of the home's appreciation. Some GSFA Platinum options are forgivable over time. Read the repayment and shared-appreciation terms before you sign, not after: assistance lowers your cash in, it doesn't lower the home's price.

For most programs in this guide, a first-time homebuyer is someone who has not owned and occupied a home as a principal residence in the past three years. Owned a home four years ago? You may qualify as a first-time buyer again. Dream For All additionally requires at least one borrower to be a first-generation buyer. Each program's exact definition controls, and your lender verifies it.

It depends on the loan and the program:

• FHA (HUD floor): 580+ for 3.5% down; 500–579 requires 10% down.
• Conventional: generally 620 minimum.
• CalHFA via MyHome: generally 640 for the FHA path, 660–680 for conventional depending on income.
• GSFA Platinum: 640 minimum.
• City of LA LIPA / MIPA: 660 minimum middle score.

One caution: lenders can set stricter requirements (“overlays”) than the program floor, so a score that qualifies on paper can still be declined by a specific lender — and approved by another.

Not necessarily — but be honest about which problem you're solving. If your score is below 580, the realistic work is credit repair first: paying down revolving balances, fixing reporting errors, and letting on-time payments age usually moves a score faster than any shortcut, and Daniel can talk through what lenders actually look at. If you're in the 580–660 band, FHA and some assistance paths may already be open to you. What doesn't work is touring homes before a lender has seen your file — the pre-approval conversation is free and tells you exactly where you stand.

A pre-qualification is a lender's informal estimate based on what you tell them. A pre-approval means the lender has verified your income, assets, employment, and credit and issued a letter for a specific loan amount, subject to the property and final underwriting. Sellers in Los Angeles generally expect a pre-approval letter with an offer, and several assistance programs require pre-approval through a participating lender before funds can be reserved. See the checklist above.

If you're using most assistance programs, yes. CalHFA requires an approved education and counseling course with a certificate; the City of LA and LA County programs require an 8-hour course from an approved/HUD-approved provider. It's usually inexpensive, available online or in person, and — honestly — useful: it covers exactly the costs and documents this guide summarizes. Complete it early so it never delays a closing.

Preparation and pre-approval often take one to three weeks once documents are gathered, plus any required education course. Home searching varies from days to months. Once an offer is accepted, a California escrow typically runs about 30 to 45 days for inspection, appraisal, underwriting, and closing. Assistance programs with reservation rounds (like the City of LA's) can add weeks before you can even write the offer — another reason to start the lender conversation first. The full sequence is in the timeline above.

Statewide programs (CalHFA, GSFA) apply anywhere in California, but every program has price caps and income limits, and Calabasas prices sit far above most of them — LIPA's purchase-price cap, for example, is $956,465 and HOP's caps are $700,000–$850,000, below typical Calabasas single-family prices. For higher-priced areas, the realistic low-down paths are usually the 3%–3.5% loans themselves rather than assistance. If Calabasas is the goal, start with Daniel's Calabasas neighborhood guide on soldbymrsmith.com and a payment conversation — and if you're also selling, his valuation page is the companion on that side.