How to Get the Best Mortgage Series – Week 3
Down Payments in Los Angeles & the San Fernando Valley: How Much Do You Really Need?
Follow this series to learn how to get the best mortgage for your financial situation and goals. Each week, we cover steps you need to take to make the process productive and successful.
This week, we’re talking about down payment options — and how much cash you really need (or don’t need) to buy a home in Los Angeles and the San Fernando Valley.
🚫 A Down Payment Doesn’t Have to Be a Roadblock
Many buyers in Los Angeles think they need 20% down to purchase a home. The truth? That’s no longer the case. There are loan programs that allow you to put far less down and still avoid monthly mortgage insurance. As a San Fernando Valley real estate agent, I’ve helped clients in Woodland Hills, Encino, Tarzana, Northridge, Panorama City, and beyond achieve their homeownership goals by finding the right financing solutions.
🔑 It’s Not One-Size-Fits-All
Your down payment depends on:
- The type of mortgage you choose
- Your budget and financial picture
- The type of home you’re buying
That’s why it’s so important to talk to multiple lenders. Each one offers different programs, and some will be a better fit for you than others.
📊 Step by Step to Your Down Payment
- Monthly Budget
- Correlating Sales Price
- Mortgage Options
- Down Payment
Once you connect your budget to your target home price, you’ll know which programs fit best — and how much cash you’ll really need.
💡 Don’t forget: closing costs usually average about 3% of the purchase price.
Down Payment Options in Los Angeles
- Conventional Loans: Often 5–20% down, but some programs allow as little as 3%.
- FHA Loans: 3.5% down, though insurance fees can increase monthly costs.
- VA Loans: 0% down for qualified veterans.
- Down Payment Assistance Programs: Local programs can provide tens of thousands toward your purchase.
👉 Here’s the big opportunity most buyers don’t know about: In Los Angeles, there are currently two Down Payment Assistance Programs that require as little as 1% down and provide up to $115,000 or even $160,000 toward your down payment and closing costs. Deadlines are coming up this September and November, and I’ve already helped several of my clients use these programs to achieve homeownership in the San Fernando Valley and greater Los Angeles.
📍 This program applies to all the communities within the City of Los Angeles. A few examples include Woodland Hills, Encino, Tarzana, Northridge, Panorama City, Reseda, Sylmar, Studio City, Warner Center, and Canoga Park — among many others.
📩 Email me today to receive the full list of Los Angeles communities covered by this program and find out if your neighborhood qualifies.
⚖️ Why Not Put More Down?
Many buyers still hear the advice: “Wait until you have 20% down.” While well-intentioned, that isn’t always the best move.
- It delays homeownership. Saving for 20% can take years and make you miss opportunities now.
- It drains your savings. Using all your money for a large down payment leaves little for emergencies, investments, or homeownership costs.
Sometimes, putting less down is the smarter move.
💡 Ways to Boost Your Savings
If you want to prepare for a down payment, here are some strategies (consult your tax/financial advisor first):
- Borrow from your 401(k) or IRA
- Accept gifts from family (up to $19,000 per person in 2025)
- Adjust tax withholdings to increase your refund
- Cut back on expenses, sell unused items, or add a side hustle
🌟 Final Thought
If buying a home in Los Angeles or the San Fernando Valley feels out of reach because of the down payment, don’t count yourself out. With today’s loan programs — plus the two little-known assistance opportunities available right now — you might be much closer to owning a home than you think.
As a San Fernando Valley real estate agent, I specialize in helping buyers discover and qualify for programs like these. I’ve guided clients in Woodland Hills, Encino, Tarzana, Northridge, Panorama City, and many other Los Angeles communities through the down payment assistance process — and I’d love to help you too.
📲 Reach out today to see if you qualify — and don’t forget to email me for the full list of Los Angeles communities covered by this program. Deadlines are coming fast!
