You do not need 20 percent down. You never did.
That number buys one thing: it lets you skip mortgage insurance. It is not a rule, it is not a law, and it is not what most buyers actually do. It survives because it is the only figure anyone ever repeats.
Conventional programs can start near 3 percent down. FHA sits at 3.5 percent. VA can be zero for those who qualify. On a $1.35 million Orange County home that is roughly $47,000 rather than $270,000.
Under 20 percent you pay mortgage insurance and your monthly payment is higher. That is a real cost, and anyone who skips past it is selling you something. The question was never the percentage. It is whether the payment works.
What almost nobody adds up is the cost of waiting years to reach 20 percent while rent and prices keep moving.
The short version
- It buys you one thing: no mortgage insurance.
- It is not a rule. It never was.
- Conventional can start near 3% down.
- FHA sits at 3.5% down.
- VA can be zero for those who qualify.
- On a $1.35M home that is $47,000, not $270,000.
- The question is never the percentage. It is whether the payment works.
Talk it through with Kini
Kini will run it with you on your real budget, anywhere in Orange, Los Angeles, Riverside or San Bernardino County. No charge and no pitch.
Book a consultation or call or text (323) 320-1725. See the down payment help you may qualify for.