For many first-time homebuyers, the idea of purchasing a home in California can feel overwhelming. The biggest concern? How much money do you actually need to buy a home?
The good news is—it might be more affordable than you think! In some cases, buying a home can cost less upfront than renting an apartment. With new loan programs and down payment assistance options, homeownership is more within reach than ever.
🔎 Breaking Down the Costs of Buying a Home
1️⃣ Down Payment – What You Need to Know
Your down payment is the portion of the home price you pay upfront, while the rest is financed through a mortgage. The amount required depends on the type of loan you choose:
✅ FHA Loan – Just 3.5% down (For a $400,000 home, that’s $14,000)
✅ VA Loan – $0 down (For eligible military veterans)
✅ Conventional Loan – As little as 3% down (That’s $12,000 on a $400,000 home)
🏡 Compare this to renting: A typical lease requires first and last month’s rent + security deposit, which can easily add up to $10,000+!
2️⃣ Closing Costs – What to Expect
Closing costs are additional expenses required to complete the purchase. These usually range from 4-6% of the home price and may include:
💰 Lender Fees – Loan origination, processing, and underwriting costs
📋 Appraisal Fee – Determines the market value of the home
🏡 Title Insurance – Protects you from any property ownership issues
🔑 Mortgage Insurance – Required for loans with less than 20% down
🏛 Recording Fees & Taxes – Government fees for transferring property ownership
❓ What If You Don’t Have Enough Saved?
Don’t let a lack of savings hold you back! There are several programs designed to help first-time buyers cover their down payment and closing costs, including:
✅ Down Payment Assistance – May provide up to 10% of the home’s price
✅ Grants & Non-Profit Assistance – Free money for eligible buyers
✅ Gift Funds from Family – Many loan programs allow financial gifts
✅ Seller Contributions – You may be able to negotiate for the seller to cover some costs
💰 Are You Eligible for Assistance? Find Out in 45 Seconds!
The best part? Checking your eligibility is FREE and requires no commitment!
💰 Down payment assistance is awarded on a first-come, first-served basis—don’t miss out!
🔽 Click below to see if you qualify today! 🔽