You Do NOT Need 20% Down to Buy a Home in Temecula — Here Is What You Actually Need

Added: 2026-04-30

[00:00:00]After reviewing the numbers, I want to bust one of the biggest myths that is keeping first-time buyers in the Temecula Valley on the sidelines right now. The myth is that you need 20% down to buy a home. You do not, and believing that you do is costing people months and sometimes years of equity building while they sit and wait.

[00:00:18]Here is what the actual landscape looks like right now. FHA loans allow as little as 3 and 1/2% down. Conventional loans have options starting at 3% for qualified buyers. VA loans for veterans and active military requires zero down payment. CalHFA and other state programs have down payment assistance options that can significantly reduce what you need to bring to the table. On a $650,000 home in Temecula at 3 and 1/2% down, it's roughly 22,750.

[00:00:47]Not 130,000. That's a very different conversation and a much more achievable one for a lot of families who've been sitting on the sidelines thinking they're not ready. Now, here's the honest part. A lower down payment usually means mortgage insurance added to your monthly payment, and your rate may be slightly higher than someone who puts 20% down. Those are real tradeoffs, and you deserve to understand them before you decide.

[00:01:10]But, for a lot of buyers, the math still works out better to buy now with a smaller down payment than to wait years saving towards 20% while prices and rents continue to climb.

[00:01:20]DM me, and I'll connect you with my preferred lender who could run your specific numbers. No pressure, no obligation, just real information so you can make an informed decision.