One of the biggest myths in real estate is that you need 20% down to buy a home. I hear it all the time from buyers who have been sitting on the sidelines, saving, waiting — and in the meantime watching home prices in Riverside climb higher and higher.
The truth? There are multiple loan programs available right now that allow you to buy a home in Riverside with far less than $20,000 down — and in some cases, with almost nothing out of pocket.
Here is a clear breakdown of your options in 2026.
FHA Loans: 3.5% Down
FHA loans are the most popular low-down-payment option for first-time buyers. With a credit score of 580 or higher, you can put down just 3.5%.
On a $500,000 home in Riverside, that is $17,500 down — well under the $20K threshold. And if you qualify for down payment assistance (more on that below), your out-of-pocket could drop even further.
What to know: FHA loans include mortgage insurance premiums (MIP) that add to your monthly payment. You pay an upfront MIP of 1.75% of the loan amount and an annual premium built into your monthly payment. That said, for buyers who do not have 20% down, FHA often still delivers the most affordable path into homeownership.
Conventional Loans: As Low as 3% Down
Fannie Mae and Freddie Mac both offer conventional loan programs with down payments as low as 3%. These are sometimes called HomeReady or Home Possible loans and are designed specifically for buyers with moderate incomes.
On a $500,000 home, 3% down is just $15,000 — less than $20K. You will pay private mortgage insurance (PMI) until you reach 20% equity, but PMI on a conventional loan can eventually be removed. FHA MIP typically stays for the life of the loan if you put down less than 10%.
VA Loans: Zero Down for Veterans
If you served in the military, the VA loan is one of the most powerful financial tools available to you. VA loans require zero down payment, no PMI, and typically offer highly competitive interest rates.
On a $500,000 Riverside home, a qualified veteran could buy with $0 down. The only upfront cost is the VA funding fee, which can often be rolled into the loan.
If you or a spouse served — active duty, National Guard, or Reserves — this program should be your first call.
CalHFA: California's First-Time Buyer Programs
The California Housing Finance Agency offers programs specifically designed to help first-time buyers get into homes with minimal down payment and closing cost assistance. In 2026, the key CalHFA programs include:
• MyHome Assistance Program: Provides a small deferred-payment junior loan to help cover down payment and/or closing costs. No monthly payments on this junior loan — it is paid back when you sell or refinance.
• CalHFA FHA and Conventional Programs: Combine a first mortgage with down payment assistance. Designed for buyers who meet income limits for their county.
• Dream For All (when funded): A shared appreciation loan that covers up to 20% of the purchase price. This program is extremely popular and funding goes fast when it opens — you need to be ready.
Income limits and purchase price limits apply. A qualified lender can tell you exactly what you qualify for based on your specific numbers.
Down Payment Assistance Programs in the Inland Empire
Beyond CalHFA, there are city and county-level programs worth knowing about:
• City of Riverside Homebuyer Assistance: The City of Riverside has periodically offered down payment assistance loans for qualifying buyers purchasing within city limits. Availability depends on funding cycles.
• Riverside County Programs: The county also administers assistance programs tied to CDBG funding for income-qualified buyers.
• Nehemiah and Other Nonprofit Programs: Several nonprofit organizations offer down payment gift funds that do not need to be repaid.
>> Programs come and go based on funding. The buyers who benefit most are the ones who are already pre-approved and ready to move when a program opens up. Do not wait to start the process.
What $20K Actually Covers in Riverside
To give you a complete picture, here is a realistic breakdown of what $20,000 can cover when buying a $500,000 home using an FHA loan:
• Down payment (3.5%): $17,500
• Upfront MIP (financed into loan): $0 out of pocket
• Closing costs: $8,000 to $12,000 estimated — often negotiable with the seller covering a portion
• Total needed from buyer: $17,500 to $29,500 depending on closing cost negotiations
When sellers cover some closing costs, or when a down payment assistance program covers part of the down payment, many buyers close for well under $20,000 out of pocket.
The Bottom Line
If you have been waiting to buy in Riverside because you do not have 20% saved, stop waiting. The programs exist. The path is real. What you need is a lender who knows these programs inside and out, and an agent who understands how to write offers that position you competitively even with a low down payment.
I have helped dozens of first-time buyers navigate exactly this situation across Riverside and the Inland Empire. The consultation is free and there is no pressure.
