20% down payment seem impossible when homes in Southern California range from $300K and up for a 3 bedroom, but how about 3% down payment? There are 3 loans out there right now that I know of that offer 3% down payment.
OPTION 1: FHA loan offered by the Federal Housing Administration that offers buyers to purchase a home under FHA loan amount limits. FHA loans are offered through the major banks like Chase, Wells Fargo, Bank of America. If you stop by your local branch, they carry the FHA loan product and you can get a loan approval through them.
(for other states, please refer to the www.fha.com website)