Can I Buy a House in Bakersfield With 3% Down?

At a median Bakersfield home price of approximately $380,000, a 3% down payment is $11,400. A 3.5% FHA down payment is $13,300. These are meaningful but achievable numbers for most working households. The monthly payment at 3% down on a $380,000 purchase at current rates will include PMI, typically $100-150/month until you reach 20% equity. Factor that into your payment estimate.

Fannie Mae's HomeReady program allows 3% down for first-time buyers or low-to-moderate income buyers in qualifying areas. Standard conventional loans also allow 3% down for first-time homebuyers (borrowers who haven't owned a home in the past 3 years). Conventional 3% down requires a minimum 620 credit score and has income limits on HomeReady in some areas. PMI can be cancelled once you reach 20% equity, which FHA MIP cannot be (for most FHA loans).

CalHFA offers several programs that provide down payment and closing cost assistance to California buyers. The MyHome Assistance Program provides a deferred-payment junior loan for the down payment. The Dream For All program (when funded) offers shared appreciation loans that can cover up to 20% of the purchase price. Dan is a CalHFA-approved lender and walks buyers through which CalHFA program applies to their income, purchase price, and county. Kern County has its own income limits for CalHFA eligibility.

FHA loans require 3.5% down with a 580+ credit score, or 10% down for scores between 500-579. FHA is often the better path for buyers with credit scores in the 580-620 range where conventional becomes restrictive. The trade-off is MIP (mortgage insurance premium): FHA charges 0.55% annually on most 30-year loans, and for borrowers who put less than 10% down, MIP remains for the life of the loan. This is why buyers who start on FHA often plan to refinance into conventional once they build equity.