How Much Do You Need for a Down Payment?

The short answer

Down payment expectations vary widely by program. For qualified buyers, some conventional loans can begin near 3–5 percent, and FHA loans around 3.5 percent. Higher-value and jumbo purchases — the norm across Los Angeles estate markets — typically expect more, often in the range of 10–20 percent or greater, because the loan amounts exceed conforming limits.

These are general ranges, not offers. What applies to you depends on the specific program, the property, and your overall profile.

Why higher-value purchases work differently

Once a purchase price rises above the conforming loan limit for the county, financing moves into jumbo territory. Jumbo loans are held or priced differently by lenders, and they often look closely at the funds you keep in reserve after closing — not only the amount you put down.

In other words, the down payment is one lever among several. Reserves, overall debt, and how strong your offer needs to read can matter just as much.

Beyond the minimum

A larger down payment lowers your loan balance and monthly obligation, but it also ties up capital that might serve you better elsewhere — in a business, an investment portfolio, or simply as liquidity. A smaller down payment preserves that flexibility at the cost of a larger loan.

The “right” number balances monthly comfort, reserves, and the opportunity cost of your capital. It is a strategy decision, not just a threshold.

What to prepare

Wherever your number lands, expect to document where the funds come from and that they have been in your accounts for a period of time. If any portion is a gift, that typically needs its own paper trail.

A financing review can map a realistic down-payment range for your situation before you begin making offers.