According to the Profile of Home Buyers and Sellers from NAR , the median down payment hasn ’ t been over 20 % since 2005 . Today , the median down payment for all homebuyers is only 13 %. And it ’ s even lower for first-time homebuyers . Typically , they ' ve put down just 7 %. Better yet , there are also loan options that require as little as 3.5 % ( or even 0 %) down for buyers who qualify ( see chart below ):
Median Down Payments
Today ’ s median down payment is far less than 20 %
13 % 7 % 3.5 %
All Homebuyers
First-Time Homebuyers
With Some Loan Options
Sources : NAR , FHA
What Does This Mean for You ?
While a down payment of 20 % or more does have benefits , the typical buyer is putting far less than that down . That ’ s good news for you because it means you could be closer to your homebuying dream than you realize .
If you ’ re interested in learning more about low down payment options , there are several places to go . There are programs for qualified buyers with down payments as low as 3.5 %. There are also options like VA and USDA loans with no down payment requirements for qualified applicants .
To understand the programs that are out there , you need to do your homework . Information is available through sites like downpaymentresource . com . But it also helps to turn to the experts for insights and advice . Be sure to work with a real estate advisor from the start to learn what you may qualify for in the homebuying process .
Bottom Line
Don ’ t let down payment myths keep you from hitting your homeownership goals . If you ’ re looking to buy this year , let ’ s review your options together .
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