How Much Down Payment Do You Need When Buying A Home in Mission Viejo

Real Estate Agent with Century 21 Award CalBRE 01730187

How Much Down Payment Do You Need When Buying A Home in Mission Viejo


You’ve probably asked yourself, “How much down payment do I need to buy a house in Mission Viejo?”

In this video, I’ll give you some surprising new information and dispel some incorrect information about the down payment requirements when buying a house. And make sure to watch to the end to hear about ZERO down programs.


So let’s get started…


The traditional belief by 65% of buyers is that they need 20% down to purchase a home. While there are 20% loans available, it is not the only way to get your home purchased.


Today, lenders have created loans with down payments of 3%,




And 20%


There are even loans that have a ZERO down payment.


The most important thing to know is that these programs are more widely available than you think and you may qualify for one.


Calculating down payment and monthly payments is much more complicated than simply knowing how much the home costs.


Many factors will influence the numbers such as 

income, debts, credit history, job history, length of loan and many more. 


For example, you might qualify for a 20% down loan but you might also be able to get a loan with 3.5% down, which would raise your monthly payment significantly but would preserve your capital. The deciding factor in this equation might be the fact that you have a high salary which could absorb the higher payment and then leave you with money for improvements or other uses.


Credit history will also affect your ability to get lower down payments. Your FICO score is probably the greatest factor in securing a loan. A high score will give you access to the very best interest rates as well as many loan programs. 


Conversely, lower credit scores will limit your choices. You still might get a low down payment but your interest rate will be higher than someone with top notch credit.'s a breakdown of some down payment programs currently being offered:


Conventional loans can have down payment of 3, 5, 10 and 20 percent.

FHA (Federal Housing Authority) backed loans can have a low 3.5% down payment. One thing to remember is that loans with less than 20% down will need private mortgage insurance. I’ll cover this in an upcoming video.


VA or Veterans Administration loans can have ZERO down as a benefit for your military service and does the USDA (the US Department of Agriculture). You don’t need to buy a rural property for one of these. Your suburban home may qualify.


Again, there are many factors in determining what kind of loans are available to you. One of the best things to do as you start the home buying process is to get together with a mortgage professional and have a discussion about your situation. With some basic information like income, expenses, debt and savings, your lender can tell you about some different loans that might work for your situation.

Well, CONGRATULATIONS if you’ve hung in to this point. 


As I promised, here’s some bonus information about getting into a home with ZERO money down.


There are loans available where you can get a 97% loan along with a 3% loan to cover the down payment requirement. Some programs vary, but one company offers the 3% loan with no interest that does not require any monthly payment buy will just remain on the title as a loan which must be paid off if sold or re-financed.


There are even grants available that will cover your closing costs so that you could make a home purchase with only $400 out-of-pocket. 


Check with your mortgage professional for details about these loans or contact me directly for more information. 

So, If you are thinking about moving to Mission Viejo or the surrounding area, send us a  text, give us a call, send an email...We’re talking to people every day about moving here and enjoying the Southern California lifestyle.





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John Alesi - REALTOR®


CENTURY 21 Award

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CalBRE# 01730187

Copyright 2018 by John Alesi. Text and images may not be copied with out consent.


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Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

I have never had luck presenting buyer with <20% downpayment. On accepting offer my lowest was 10%. The agent whom I know promised it will happen. Very few sellers want to consider weak buyers.

Jan 30, 2020 05:53 AM #1
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

You've covered a lot of material in this video, John. As Sam mentions, in a competitive situation, a zero down loan might not be as attractive an offer to a seller. However, if it's all someone can do, it's a step in the right direction - and patience generally pays off. 

Jan 30, 2020 06:36 AM #2
John Alesi
Century 21 Award - Mission Viejo, CA
(Orange County California Real Estate)

While sellers can pick any buyer they want, I think you do a dis-service to your buyer if you don't go to bat for them if they have less than 20% down. I've seen VA buyers with zero down get selected over other buyers because the seller was also a veteran and wanted to help another Vet. I've also seen young families with low down get picked because because the sellers wanted to sell to a family rather than an investor. And at the end of the day, the seller gets 100% of the money when the deal closes no matter what the down payment amount was.

Jan 30, 2020 08:06 PM #3
Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope January was a good month for you.

Feb 01, 2020 01:48 AM #4
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