One of the biggest misconceptions I hear from prospective homebuyers is:

“I need 20% down before I can buy a home.”

For many buyers, that simply isn't true.

If you're hoping to purchase your first home in Murrieta, Temecula or elsewhere in Southern California, waiting until you've saved 20% could mean postponing homeownership unnecessarily.

Depending on your credit, income, debts and the property you're purchasing, there may be mortgage programs that require substantially less cash upfront.

FHA financing can start with 3.5% down

FHA financing continues to be an important option for first-time and moderate-income homebuyers.

An FHA loan can permit a 3.5% minimum down payment for borrowers who meet FHA's applicable credit requirements.

That means a buyer purchasing a $500,000 home isn't necessarily looking at a $100,000 down payment.

A 3.5% down payment on $500,000 would be:

$17,500

That doesn't mean $17,500 represents all the money a buyer may need. There can also be closing costs, prepaid property taxes, homeowners insurance, escrow funding and other expenses.

However, there are ways we can sometimes reduce the amount a buyer needs to bring to closing.

California buyers may also have down-payment assistance options

This is where working with someone familiar with California housing programs becomes especially valuable.

The California Housing Finance Agency, commonly called CalHFA, offers programs designed to help eligible California homebuyers.

For example, CalHFA's MyHome Assistance Program can provide eligible first-time homebuyers with a deferred-payment junior loan that can be used toward down payment and/or closing costs.

CalHFA currently defines a first-time homebuyer generally as someone who has not owned and occupied their own home during the previous three years. CalHFA also requires homebuyer education for first-time borrowers using its programs, and individual programs have additional requirements, including income limits.

That three-year rule surprises many people.

You might have owned a house years ago and still potentially qualify today as a “first-time homebuyer” for certain programs.

Down-payment assistance isn't free money

This is an area where buyers need good advice.

Some assistance programs are grants. Others are deferred-payment loans, shared-appreciation programs or subordinate liens that eventually must be repaid.

That distinction matters.

A program that gets you into a house with less cash today can still be an excellent tool, but you should understand what happens when you eventually:

sell the property, refinance the first mortgage, or pay off the home.

For example, CalHFA currently lists its MyHome Assistance Program at 1% interest. CalHFA's rates and program availability can change, so buyers should have current terms reviewed when they're ready to purchase.

That's one reason I don't believe buyers should choose a loan program based solely on the words “down-payment assistance.”

We need to look at the entire financing strategy.

What about mortgage rates right now?

Rates are another reason buyers should have their numbers run rather than relying on headlines.

According to Freddie Mac's Primary Mortgage Market Survey, the average U.S. 30-year fixed-rate mortgage was 6.71% on September 3, 2026, compared with 6.66% the previous week.

That is a national benchmark—not a quote or advertised rate from Premiere Capital Mortgage.

Your actual rate can differ based on the loan program, credit profile, loan-to-value, occupancy, property type, points, lender credits and other factors.

Down-payment-assistance loans can also carry different pricing from standard mortgage financing. For example, CalHFA's September 4 posted rates ranged considerably depending on the first-mortgage and assistance combination selected.

That's why I like comparing multiple scenarios for a buyer.

Sometimes bringing slightly more money to closing produces a meaningfully lower payment.

Sometimes preserving cash and using assistance makes more sense.

There isn't one answer for everybody.

Should you wait for mortgage rates to fall?

Trying to perfectly time mortgage rates is difficult.

The better question is:

Can you comfortably afford the right home with the financing available today?

If the answer is yes, we can also discuss what refinancing might look like later if market rates decline enough to produce meaningful savings.

California housing prices aren't standing still either. The California Association of Realtors forecast California's statewide median home price to increase 3.6% in 2026, although actual price movements vary substantially by city, neighborhood and property.

Waiting for a lower mortgage rate doesn't guarantee that the house you want will become cheaper.

Start with the numbers—not the house

Before spending weekends touring homes in Murrieta and Temecula, I recommend finding out four things:

How much home can you comfortably afford?

Which mortgage programs fit your situation?

How much cash will you realistically need at closing?

What will your complete monthly housing payment be?

That last number is especially important.

Don't focus only on principal and interest. Your analysis should consider property taxes, homeowners insurance, mortgage insurance when applicable, HOA dues when applicable and any other recurring housing expenses.

Let's build your homebuying strategy

At Premiere Capital Mortgage, we work with first-time buyers and borrowers who don't necessarily fit into a one-size-fits-all mortgage box.

Depending on your circumstances, we can evaluate FHA, conventional financing, CalHFA/down-payment assistance and other appropriate mortgage options.

If you're considering buying in Murrieta, Temecula, Riverside County or elsewhere in California, contact Premiere Capital Mortgage before assuming you don't have enough money saved.

You may be closer to homeownership than you think.

John F. Lawrence

Premiere Capital Mortgage

951-634-9284

PCMloans.net

This article is for educational purposes only and is not a commitment to lend or a quote of available loan terms. Mortgage rates, costs, eligibility requirements and program availability can change without notice. Qualification is subject to underwriting, applicable program guidelines and lender approval.