Loans & Assistance

Which loan actually fits a Bay Area first-time buyer?

Bay Area prices push a lot of first-time buyers into loan types and price tiers that don't come up in generic home-buying advice. Here's the plain-English version.

Loan types

How the main options compare

Loan typeMin. downTypical creditMortgage insuranceBest for
Conventional (20% down)20%680+ typicalNoneBuyers with a large down payment who want the lowest monthly payment.
Conventional (3–5% down)3–5%620–680+PMI until 20% equityMost first-time buyers with steady income and a smaller down payment.
FHA3.5%580+MIP for the life of the loan (usually)Buyers with lower credit scores or higher debt-to-income ratios.
Jumbo10–20%700+ typicalVaries by lenderBay Area prices above the conforming loan limit — common here, unlike most of the country.

Illustrative ranges only — actual requirements vary by lender, loan program, and your full financial picture.

Stack it

Loans and assistance usually work together

Most first-time buyers don't pick just a loan — they pair a low-down-payment loan with an assistance program to cover part of the down payment or closing costs.

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