In California, you can snag a conventional loan with just 3% down, but 13% is the average—and 20% is the goal to avoid dreaded PMI fees. While 3% gets you in the door, putting down 20% makes you a seller’s favorite and locks in better rates. Basically: bigger down payment = less stress and lower monthly payments.
Why Bigger is Better:
Ditch the Extra Fees: 20% down kills Private Mortgage Insurance (PMI), saving you cash every month.
Win Bidding Wars: A higher down payment makes your offer way more competitive in crazy California markets.
Lower Rates: Lenders see less risk, which means lower interest rates and cheaper payments over time.
Pro-tip: If 20% feels impossible, just remember that 3% is the minimum to start, but aiming higher helps you avoid those extra monthly fees!