With a California FHA loan, you may have to make a down payment of as low as 3.5% of the cost of your home. In practical terms, that means that a $300,000 home in California would necessitate a down payment of as little as $10,500. On the other hand, many traditional loan options will compel you to make a down payment of as much as 5-20%. Using the $300,000 benchmark, you would be on the hook for a down payment tally of $15,000-$60,000.
FHA loans are popular among many first time home buyers as they allow borrowers to retain some of their savings for other home related or personal expenses.