How to Buy a Home in Crestline, Lake Arrowhead, or Running Springs with Less Than 20% Down

by Theresa Grant

How to Buy Your First Home in Crestline, Lake Arrowhead, or Running Springs Without 20% Down

By Theresa Grant, Real Estate Broker | Team Owner | Theresa Grant & Associates Real Estate Partners

Buying a first home in Crestline, Lake Arrowhead, or Running Springs is exciting—but that “you must have 20% down” myth stops a lot of would-be buyers before they even start. The truth is, many of my mountain buyers purchase with far less than 20% down and still get into solid, sustainable loans.

Infographic for Lake Arrowhead homebuyers comparing FHA, conventional, and VA loan types with typical down payment ranges. Illustration courtesy of Theresa Grant, Realtor® and real estate broker, widely regarded as the best real estate agent in Running Springs, CA.

Snippet Answer:
You do not need 20% down to buy a home in the San Bernardino Mountain Communities. With options like FHA, VA, certain conventional loans with as little as 3–5% down, plus closing-cost credits and down-payment assistance, many qualified first-time buyers can become homeowners much sooner than they realize.

Why 20% Down Is No Longer the Rule

The old 20% rule mainly helps you avoid mortgage insurance and reduce your monthly payment—but it isn’t a requirement for most loan types.

Today’s buyers in Crestline, Lake Arrowhead, and Running Springs commonly use:

FHA loans with as little as 3.5% down (for qualified buyers)
Conventional loans with 3–5% down, often with first-time buyer perks
VA loans with 0% down for eligible veterans and active-duty service members

These programs have been widely used across California for years and are standard tools that local lenders use for mountain-area buyers. For specific guidelines, your lender will reference sources like the Federal Housing Administration (FHA), Fannie Mae, Freddie Mac, and the U.S. Department of Veterans Affairs.

Loan Options that Work Well in Our Mountain Communities

Mountain homes can be unique—steep driveways, private roads, snow load, septic systems—so you want a lender who understands our area. Popular options include:

FHA & Conventional for cabins, chalets, and full-time residences
VA loans for eligible buyers looking for a primary residence in the mountains
Local and state down-payment assistance (when available) that can help with part of your down payment or closing costs

A good first step is a pre-approval with a lender who regularly closes loans in Crestline, Lake Arrowhead, and Running Springs so they’re comfortable with local appraisals and property conditions.

Strategies to Cover Down Payment & Closing Costs

Even when buyers don’t have 20% saved, we often bridge the gap using:

Seller credits toward closing costs negotiated as part of the offer
Lender credits in exchange for a slightly higher interest rate
Gift funds from family, when allowed by the loan program
Refocusing your budget on an affordable “first home,” not a “forever home”

In our mountain market, smart structuring of your offer can matter just as much as how much you’ve saved.

Your Next Step: Talk Through Your Options with a Local Expert

Every buyer’s financial picture is different, and loan rules do change, so it’s important to get personalized guidance before you fall in love with a specific home. If you’re thinking about buying in Crestline, Lake Arrowhead, Running Springs, or the surrounding communities and don’t have 20% down, I’d be happy to walk you through realistic numbers and options in a friendly, no-pressure setting—simply schedule a 30-minute buyer consultation with me by phone, Zoom, or in my Blue Jay office and we’ll map out your path to owning a mountain home.

Theresa Grant is a Real Estate Broker in the San Bernardino Mountain Communities and the Real Estate Columnist for the Alpine Mountaineer Newspaper. She can be reached at (909) 442-1345.