What LA Property Buyers Are Saying About Down Payments in 2025

The Los Angeles housing market is always full of questions, but one in particular keeps coming up: “Do you really need $100,000 saved up before you can buy a home in LA?”

It’s a simple question with a complicated answer. Some buyers believe the six-figure down payment is the only path into the market. Others are pushing back, pointing to loans that require far less upfront cash.

A recent Reddit thread captured this tension perfectly. Dozens of buyers, renters, and homeowners weighed in on what it actually takes to buy property in Los Angeles today. Their experiences offer a window into the reality of homeownership in 2025—and the misconceptions that still cloud the process.

The $100K Myth That Won’t Die

For decades, the “20% down payment” rule has been drilled into buyers’ heads. In Los Angeles, where the median home price is hovering around the million-dollar mark, 20% easily equals or exceeds $100,000.

That number sounds impossible for many, especially younger buyers juggling student loans, rent, and rising living costs. It’s no wonder some feel locked out of the housing market entirely.

But the truth is more flexible. The Reddit conversation made it clear that while 20% down may be ideal, it’s not mandatory. Some buyers reported putting down as little as 3% to 10% using programs like FHA loans, VA loans, or special first-time buyer assistance.

In other words: $100K might be a symbol of stability, but it’s not a gate you have to pass through to own a home in LA.

Buyers Share Their Real Experiences

One of the most valuable parts of the Reddit thread was hearing directly from people who have already purchased in Los Angeles.

• The Low-Down Buyer: One user explained that they purchased with only 5% down. They admitted their monthly payment was higher, but they felt it was worth it to start building equity sooner rather than later.

• The PMI Skeptic: Another shared that private mortgage insurance (PMI) scared them at first, but once they saw the actual numbers, it wasn’t as bad as they had imagined. “It added a couple hundred dollars to my payment, but it let me buy years earlier,” they said.

• The Traditionalist: A few insisted on saving closer to 20%, even if it meant waiting longer. For them, it was about security and avoiding high monthly obligations.

These different stories reflect the diversity of financial situations in Los Angeles. What works for one buyer may not work for another. But the collective point is clear: the “one-size-fits-all” down payment rule doesn’t hold up in today’s market.

Why the $100K Idea Persists

If buyers are making moves with smaller down payments, why does the $100K idea still stick?

Part of it comes from generational advice. Many parents and grandparents, who purchased homes decades ago, repeat the 20% rule because it was the standard in their time. For them, PMI was considered a burden rather than a tool.

Another reason is the way the market feels today. In an expensive city like Los Angeles, even a small percentage of a million-dollar property still feels massive. A 5% down payment is $50,000—still a daunting number for most households.

The persistence of the $100K figure isn’t just about math. It’s about psychology. Buyers want certainty. Saying, “Save $100,000 and you’ll be safe” feels more concrete than saying, “There are many loan options and it depends on your income, credit, and lender.”

Affordability Is the Bigger Issue

Whether the down payment is $50,000 or $100,000, the underlying challenge remains: affordability. Los Angeles has some of the highest housing costs in the country.

Let’s break it down with an example:

• Median LA home price (2025): around $950,000

• 5% down payment: $47,500

• 10% down payment: $95,000

• 20% down payment: $190,000

These numbers don’t even include closing costs, which can easily run another $15,000–$20,000. Then factor in moving expenses, furnishings, and basic repairs.

Even with creative loan options, buyers are still looking at tens of thousands of dollars upfront. The Reddit thread captured this reality. Several users admitted they could handle a mortgage payment, but scraping together the down payment was the hardest part.

The Trade-Offs of Lower Down Payments

The Reddit debate also revealed the double-edged sword of putting less money down.

• Higher monthly payments: Less down means you borrow more, and your monthly mortgage climbs.

• PMI costs: While not devastating, private mortgage insurance adds to monthly expenses until you build enough equity.

• Competitive offers: In a hot market like LA, sellers sometimes prefer buyers with larger down payments because it signals financial stability.

Still, many users agreed the trade-offs were worth it. “I’d rather start building equity than keep renting,” one buyer said. Another pointed out that waiting to save 20% could mean missing years of appreciation.

The Emotional Side of Home Buying

Beyond the math, the Reddit thread revealed the emotional weight buyers carry. For some, the idea of saving $100K felt like an impossible dream. For others, buying with less down triggered anxiety about being over-leveraged.

One theme that kept emerging was the fear of missing out. Buyers worry that if they wait to save more, home prices will rise faster than they can keep up. In Los Angeles, where appreciation has historically been strong, that fear feels very real.

Others spoke about the pride of ownership, even if their finances weren’t “perfect.” They saw buying as a step toward stability, community, and long-term wealth—even if it came with short-term sacrifices.

My Take as an Observer of the LA Market

From my perspective, the Reddit discussion shows two important truths.

First, Los Angeles buyers are more resourceful than many give them credit for. They’re learning about different loan programs, weighing trade-offs, and finding ways to make ownership possible.

Second, the industry still has a communication problem. Too many people believe outdated myths about down payments. If lenders, agents, and consultants were clearer about the range of options, more buyers might feel confident entering the market.

For JDJ Consulting Group, this matters because affordability directly impacts demand. When buyers struggle, developers must adapt. Smaller units, more multi-family projects, and creative financing options are becoming more important.