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 type | Min. down | Typical credit | Mortgage insurance | Best for |
|---|---|---|---|---|
| Conventional (20% down) | 20% | 680+ typical | None | Buyers with a large down payment who want the lowest monthly payment. |
| Conventional (3–5% down) | 3–5% | 620–680+ | PMI until 20% equity | Most first-time buyers with steady income and a smaller down payment. |
| FHA | 3.5% | 580+ | MIP for the life of the loan (usually) | Buyers with lower credit scores or higher debt-to-income ratios. |
| Jumbo | 10–20% | 700+ typical | Varies by lender | Bay 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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