Down Payment Assistance in California: What You Need to Know

One of the most common questions I get as a mortgage advisor in Chico is: “Do I really need 20% down to buy a home?” The answer is no! In fact, many buyers purchase homes with much less—and in California, there are powerful programs available to make it even easier.

Myth: You Need 20% Down

While putting 20% down can help avoid private mortgage insurance (PMI), it’s far from required. Many loan programs allow you to put down as little as 3% to 5%.

The Power of Down Payment Assistance (DPA)

California offers multiple down payment assistance programs that help cover a portion of the upfront costs. These programs are designed to open the door to homeownership for families who may not have large amounts of savings.

Some programs provide grants that never need to be repaid, while others offer deferred loans that don’t need to be paid back until you sell or refinance. The key is finding the right program that fits your income, location, and goals.

Who Qualifies?

Each program has its own requirements, but generally, eligibility depends on:

• Household income

• Credit history

• Whether you’re a first-time buyer

• The location of the property

Why Work With a Local Expert

As a Chico mortgage lender, I’ve helped families right here in Butte County access these programs successfully. Navigating the rules can be tricky, but with the right guidance, buyers often discover they qualify for more assistance than they realized.

Opportunity in Today’s Market

With home prices steady and mortgage rates lower than six months ago, combining these favorable conditions with down payment assistance makes 2025 an excellent time to enter the market.

👉 Want to know if you qualify for California’s down payment assistance programs? Send me a message and let’s find out together.