Do You Need 20% Down to Buy a Home in Shasta County?

Explore down payments, closing costs and VA loan considerations for Redding and Shasta County homebuyers with Luke Ruggiero.

Luke Ruggiero | NMLS 1713993

10/12/20262 min read

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No—20% down is not a universal requirement to buy a home in Shasta County. Your options depend on the loan program, your finances and the property. A smaller down payment may make buying possible sooner, but the monthly payment and the money left in savings matter, too.

$0-down options, down payment assistance and 3%-down programs

You may have more options than you think. $0-down mortgage programs exist for eligible buyers, including VA loans and USDA loans for qualifying buyers and properties. Down payment assistance programs can also help eligible homebuyers cover some of their down payment and/or closing costs. Assistance is not always a grant; some programs use a second loan that must be repaid.

There are also first-time homebuyer mortgage options requiring as little as 3% down. Eligibility can depend on income, credit, the property, homebuyer education and other program requirements. $0 down does not necessarily mean $0 out of pocket, and assistance availability and terms vary.

Talk with Luke in a free 15-minute planning call to discuss these options in more detail and see which programs may fit your Shasta County homebuying plans.

Why do buyers hear so much about 20% down?

On a conventional mortgage, a down payment below 20% generally means private mortgage insurance, or PMI. That is a cost to compare, rather than a reason to assume you cannot buy. Ask for a side-by-side comparison of the cash required, total payment and mortgage insurance for the loan options you qualify for. Read the CFPB explanation of down payments.

Can a VA loan help with a Shasta County home purchase?

Eligible veterans, service members and certain surviving spouses may qualify for a VA-backed purchase loan. A down payment may not be required when the price does not exceed the appraised value, subject to entitlement and lender requirements. VA loans do not require monthly mortgage insurance, but a funding fee may apply unless you qualify for an exemption. No down payment does not mean no closing costs. Review VA purchase-loan eligibility and benefits.

How much cash do you need besides the down payment?

Plan for closing costs, prepaid expenses and any required reserves, as well as moving expenses and a financial cushion. Your Loan Estimate separates estimated closing costs from estimated cash to close. The total monthly payment can include taxes, homeowners insurance and mortgage insurance, not just principal and interest. Use the CFPB Loan Estimate explainer to review these figures with your lender.

Where should Redding and Palo Cedro buyers start?

Before choosing a price range, write down a comfortable monthly housing budget, the savings you can use and the savings you want to keep. Get insurance estimates for the specific property early. Bring your questions about income, existing debts and your buying timeline to a planning conversation.

Compare your financing before committing to a home. A Redding address or a listing in another part of Shasta County does not, by itself, establish eligibility for a particular mortgage program.

Talk through your homebuying numbers

Luke Ruggiero at Professional Mortgage Associates has originated mortgages since 2018, with specialties in first-time homebuyers and VA loans. Based in Palo Cedro, he helps buyers explore Northern California residential mortgages.

Book a free 15-minute phone planning call with a Shasta County mortgage lender, or start with the Redding and Shasta County first-time buyer guide.

Luke Ruggiero | Professional Mortgage Associates
NMLS 1713993 | DRE 02069888

Information checked October 6, 2026. General education, not a loan approval or commitment to lend. Eligibility, costs and program availability depend on your situation and may change.