Loan programs
The twenty-percent down payment most people grew up hearing about is often the wrong target. Several programs exist specifically to lower the amount you need at closing, and which one serves you best depends on your credit, your service history, where you are buying and how long you plan to stay.
Here is a plain summary of the main options. We will work out which combination actually fits once we see your file.
FHA
Government-insured and designed for borrowers with smaller down payments or shorter credit histories. FHA is often the most accessible route to a first home, though it carries mortgage insurance that should be weighed against the lower entry cost.
VA
For veterans, active duty, reservists and eligible surviving spouses. VA loans can require no down payment and carry no monthly mortgage insurance, which makes them one of the strongest programs available to anyone who qualifies. See our VA loans page for detail.
USDA
Zero down payment for eligible properties in designated rural areas. More of the Sacramento region qualifies than most buyers assume, and it is worth checking an address before ruling it out.
Conventional
Down payments below twenty percent are available on conventional loans, with mortgage insurance that can typically be removed once you reach sufficient equity. Often the better long-term choice for borrowers with stronger credit.
California down payment assistance
State and county programs can help with down payment and closing costs, and some can be layered with an FHA loan. Funding for these programs is limited and eligibility rules change, so it is worth asking what is currently available rather than relying on what was true last year.
Which one is right
That depends on numbers we have not seen yet. What we can tell you is that comparing them properly means looking at total cost over the years you will actually hold the loan, not just the payment or the cash needed at closing. We will lay out that comparison for your situation. To see how a down payment and loan term change a monthly payment, try the mortgage calculator.