Why Down Payments Are Falling in Galt

A few important shifts are happening in the housing market right now, and they are all moving in the same direction.

According to Realtor.com, housing inventory has increased for 28 straight months. More homes on the market means buyers are facing less competition compared to the intense bidding wars seen over the past few years.

For buyers in Galt, that can create more negotiating power and less pressure to come in with an extremely large down payment just to compete.

Sellers are adjusting too. Nationwide, nearly 40% of sellers now expect to offer concessions, up from 30% in 2025. That may include closing cost credits, rate buydowns, or other incentives that can help buyers reduce upfront expenses.

Home price growth has also slowed compared to previous years. When prices rise more gradually, buyers are not forced to increase their down payment as aggressively just to keep monthly payments manageable.

Mortgage rates have eased slightly from last year as well. Realtor.com’s 2026 forecast projects the typical monthly payment as a share of income could dip below 30% for the first time since 2022. While that may not sound dramatic, even small affordability improvements can make a meaningful difference for buyers who have been waiting on the sidelines.

The Rise of FHA and VA Loans

One of the biggest trends in today’s market is the growing use of government-backed loan programs.

Recent data shows:

• FHA loans have remained above 24% of all purchase mortgages for five straight quarters
• VA loans climbed to 11.7% in early 2026, their highest level in more than a decade
• Together, FHA and VA loans now account for over one-third of all purchase mortgages

These programs are becoming more common because they allow qualified buyers to purchase with less money upfront.

FHA loans can require as little as 3.5% down, while eligible veterans and service members using VA financing may qualify for zero-down financing.

For many buyers in Galt, these options are helping turn homeownership into a realistic possibility sooner than expected.

Becky Roenspie helps buyers understand financing options, local market conditions, and how to navigate today’s changing market with confidence.