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Do you need a California mortgage loan with a low down payment? We can help. Bridgepoint Funding offers a wide variety of home loan products and programs, some with low down payments. Contact us today to get started.

Buying a Home With Little Money Down

Some California home buyers have a hard time coming up with the down payment for a mortgage loan. Do you fall into this category? If so, you’ll be happy to know there are low down payment mortgage loan options available for California borrowers.

It’s a common misconception that home buyers have to put down 20% of the purchase price when buying a house. The truth is there are many mortgage options available with low (and sometimes no) down payment. In some cases, the funds can even be gifted to you by a third party.

California Low Down Payment Mortgages

With a conventional home loan in California, your down payment could be as low as 3% of the purchase price. Most members of the military are eligible for the VA loan program, which offers 100% financing for zero down payment. The Federal Housing Administration (FHA) program offers mortgage financing up to 96.5%, for a down payment as low as 3.5%.

Another option is to use the “piggyback” strategy of combining two loans. The 80/10/10 structure is a common example. With this mortgage strategy, the borrower takes out a primary loan that accounts for 80% of the home price, and a second one for 10% of the price. The borrower then pays the remaining 10% in the form of a down payment.

The bottom line is that there are low down payment mortgage loans in California. So don’t be discouraged if you lack the funds for a larger investment.

Down Payment Gifts from Family

These days, most mortgage loan programs allow down payment gifts from family members or other approved donors. This is another way to buy a home in California with little or no money down. The FHA program and most conventional home loans allow gift funds.

The key stipulation here is that the money must truly be a gift — not a loan in disguise. In fact, you will probably have to obtain a letter from the person(s) donating the money stating that they do not expect any form of repayment.

Ready to Explore Your Options?

As you can see, there are several ways to get a low down payment mortgage loan in California. If you have questions about qualifying for one of the loan types mentioned above, please let us know. We can help you make an informed decision.

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