Can you buy a house with no money down in California?

Yes, with a VA loan if you are eligible, or a USDA loan in an eligible area. Others can get close to zero down by combining an FHA or conventional loan with CalHFA assistance or gift funds.

Who qualifies for a VA zero-down loan?

Eligible veterans, active-duty service members, certain National Guard and Reserve members, and some surviving spouses. You need a Certificate of Eligibility from the VA.

Are there USDA-eligible areas in California?

Yes. Many rural and some suburban communities outside the major metros qualify. Eligibility depends on the specific address and your household income.

Do I have to repay CalHFA down payment assistance?

Generally yes, but it is usually deferred: no monthly payments, repaid when you sell, refinance or pay off the home. Terms vary by program.

Can my down payment be a gift?

Yes. FHA and conventional loans allow gifts from family members, documented with a gift letter and proof of the transfer.

Is putting zero down a good idea?

It can be, especially to buy sooner, but it means a larger loan, possibly mortgage insurance and less equity at the start. Compare the monthly cost of each option before deciding.

First-Time Buyers · 8 min read

No Down Payment Home Loans in California: Every Option for 2026

By Mike Basti·October 15, 2026

There are two true zero-down mortgages in California: VA loans for eligible veterans and service members, and USDA loans in eligible rural and suburban areas. Everyone else can often get close to zero down by pairing a low-down-payment loan, such as FHA at 3.5% or conventional at 3%, with CalHFA down payment assistance or gift funds from family.

The short list

Option	Minimum down	Best for
VA loan	0%	Eligible veterans, active-duty service members, some surviving spouses
USDA loan	0%	Moderate-income buyers in USDA-eligible areas
FHA + CalHFA assistance	3.5%, partly or fully covered by assistance	First-time buyers with modest credit
Conventional 3% + assistance or gifts	3%, partly or fully covered	Buyers with good credit who want to drop mortgage insurance later
FHA or conventional + gift funds	Covered by a family gift	Buyers whose family can help

VA loans: zero down for eligible service members

VA loans let eligible veterans, active-duty service members and some surviving spouses buy with no down payment and no monthly mortgage insurance. Most borrowers pay a one-time VA funding fee, which can be financed into the loan, and borrowers with a qualifying service-connected disability are generally exempt. You need a Certificate of Eligibility, which we can usually request for you. More in our VA zero-down guide.

USDA loans: zero down outside the big metros

USDA guaranteed loans offer 100% financing for homes in USDA-eligible areas, which in California include many rural and some suburban communities outside the major metros. Household income must be under the USDA limit for the county, and the home must be your primary residence. There is an upfront guarantee fee and a small annual fee. Eligibility is property-specific, so check the address before you fall in love with a house.

CalHFA down payment assistance

The California Housing Finance Agency (CalHFA) offers first-time buyer programs that pair a CalHFA first mortgage with deferred-payment assistance for the down payment and, in some programs, closing costs. You generally don’t make monthly payments on the assistance; it is repaid when you sell, refinance or pay off the home. Income limits, purchase-price limits and homebuyer education apply, and funding for some programs is limited and opens in rounds. Save Financial works with CalHFA-approved lenders. Read our CalHFA guide and how to stack assistance programs.

FHA and conventional loans with gift funds

FHA requires 3.5% down with a credit score of 580 or higher, and conventional programs allow 3% down for qualifying buyers. Both allow the down payment to come from a gift from a family member, documented with a gift letter and a paper trail showing the transfer. Combined with seller-paid closing costs, that can bring your cash to close close to zero. See our guide to gift funds.

The trade-offs of putting little or nothing down

A larger loan means a higher monthly payment and more interest over time.
Mortgage insurance: FHA has mortgage insurance premiums; conventional loans under 20% down have PMI, which can be removed later; VA has none.
Less equity at the start, which matters if prices dip and you need to sell soon.
Offers can be weaker in multiple-offer situations, so a strong pre-approval matters.

How to find out which option you qualify for

The fastest way is to compare them with your real numbers: credit, income, county and the homes you are looking at. As an independent mortgage broker, Save Financial compares VA, USDA, FHA, conventional and CalHFA options across 20+ lenders and shows you the cash to close for each one side by side. Start with our California down payment guide or get pre-approved.

About this article: Save Financial is a California-licensed independent mortgage brokerage (NMLS #377740, DRE #01875766) with offices in Newport Beach and Marina del Rey, serving all 58 counties. We shop 20+ wholesale lenders to match you with the right program. This article is general education, not a loan offer or commitment to lend. For a real quote, apply online or call 949-379-5320.