To buy a home in Salinas, you do not need a 20% down payment ($150,000 on a $750,000 purchase). Most local buyers qualify for loans requiring just 3% to 3.5% down ($22,500 to $26,250), while eligible borrowers in surrounding areas like Prunedale can access 0% down USDA loans. Combined with closing costs, total cash required is typically $30,000 to $45,000.

If you've been looking at homes in Salinas and thinking, “There's no way I have enough money saved to buy here,” you're definitely not the only one.

One of the biggest misconceptions I hear from buyers is that they need 20% down before they can even think about purchasing a home. The reality? You may need a lot less than you think. And before you decide that buying a home in Salinas is out of reach, it's worth finding out what the numbers actually look like for you.

First Things First: You Don't Necessarily Need 20% Down

Putting 20% down can have advantages, but it isn't a universal requirement. Depending on your finances and the loan you qualify for, there are several ways buyers may purchase with considerably less:

• Conventional Loans: Some conventional programs allow eligible buyers to put as little as 3% down.
• FHA Financing: FHA financing can allow a down payment as low as 3.5%.
• VA Financing: Eligible VA borrowers may be able to purchase with no down payment.
• USDA Financing: USDA financing can offer 100% financing for qualified borrowers purchasing eligible properties in eligible rural areas.

That last one is especially worth knowing about when you're looking beyond the more urban parts of Salinas and into some of our surrounding Central Coast communities like Prunedale or Royal Oaks. Property and borrower eligibility matter, so this is something I recommend discussing with a knowledgeable local lender before assuming a particular home qualifies.

What Does That Look Like on a Salinas Home?

Let's use a hypothetical $750,000 home just to make the math easy.

A 20% down payment would be $150,000. That's the number that makes a lot of potential buyers look at their savings account and think, Maybe someday. But 3% of $750,000 is $22,500, and 3.5% is $26,250. That's a very different conversation.

It doesn't mean everyone buying a $750,000 home can or should put 3% down. Your income, credit, debts, loan limits, reserves, mortgage insurance, and other factors all play a role. But it does mean that waiting until you've saved 20% isn't automatically necessary.

Your Down Payment Isn't the Only Money You'll Need

This is the part I really want buyers to understand. When we talk about how much money you need to buy a house, your down payment and your total cash needed to close are not necessarily the same number.

There can also be closing costs and prepaid expenses associated with the purchase. Depending on your particular transaction, those can include:

• Lender and escrow-related costs
• Title insurance and legal recording fees
• Prepaid homeowners insurance policies
• Property taxes and impound accounts

That's why I don't like giving someone a blanket answer such as, “You need $30,000 to buy a house.” Two buyers purchasing homes at exactly the same price can have very different financing and cash-to-close numbers.

Don't Forget About the Monthly Payment

There's another mistake I see buyers make: focusing entirely on the purchase price. What matters just as much—sometimes more—is what owning that particular home will cost you every month.

Your total housing payment may include: Principal + Interest + Property Taxes + Homeowners Insurance + Mortgage Insurance + HOA, if applicable.

And here in California, property taxes deserve a little extra attention. Under Proposition 13, a property is generally reassessed when ownership changes. The base property-tax rate is limited to 1% of assessed value, with additional voter-approved indebtedness potentially added. The Monterey County Assessor also explains that a change in ownership can result in a supplemental assessment and supplemental tax bill. That's something I want my buyers to know before they're surprised by a bill after closing.

What About Homeowners Insurance?

Insurance is another number I want buyers investigating early—not after we've fallen in love with a house. The cost and availability of coverage can vary by the home and location.

When we're looking at properties, particularly homes with acreage or homes in more rural parts of Monterey County, I encourage buyers to start investigating insurance during the buying process rather than simply estimating what it will cost. A house isn't affordable just because you can make the down payment. It needs to make sense as part of your actual monthly life.

California Buyers May Have Assistance Options, Too

This is another reason I don't want someone sitting on the sidelines simply because they assume they don't have enough saved. California Housing Finance Agency (CalHFA) programs can provide assistance for qualifying buyers.

For example, CalHFA's MyHome Assistance Program can provide eligible first-time buyers with a deferred-payment junior loan toward down payment and/or closing costs. The program currently provides up to 3% with qualifying CalHFA conventional financing or up to 3.5% with qualifying CalHFA government financing, subject to program requirements.

These programs aren't right for everyone, and qualifications matter. But you should know they exist before deciding homeownership isn't possible for you.

So, How Much Do You Actually Need?

This is where I wish more buyers started:

• Not Online home search sites.

• Not scrolling through listings at midnight.
• Not calculating 20% of every house they like and getting discouraged.

Start with the numbers. A good lender can look at your income, credit, debts, available savings, and goals and tell you what financing options you may qualify for. Then we can take that information and have a much more useful conversation:

1. What can you comfortably afford?
2. What areas make sense at that budget?
3. What will your monthly payment actually look like?
4. What kind of home and lifestyle can that budget get you in Salinas and the surrounding Central Coast?

That's where I come in.

You Don't Have to Be Wealthy to Start Asking Questions

I think homeownership can feel unnecessarily intimidating, especially for first-time buyers. You don't need to have everything figured out before talking to a Realtor or lender. You don't need perfect finances, and you certainly don't need to be embarrassed if you're starting with less savings than you thought you'd need.

Sometimes the answer will be, “You're ready now.”
Sometimes it will be, “You're closer than you thought.”
And sometimes we'll figure out exactly what needs to happen over the next six months or year to get you there.

All three are useful answers.

If you're wondering whether buying a home in Salinas—or somewhere else along the Central Coast—is realistic for you, reach out. I'm happy to help you understand the local market, talk through the process, and connect you with a trusted lender who can help determine your actual numbers.

No pressure. Just a starting point.