There’s a lot of outdated advice floating around about what it takes to buy a home – especially when it comes to how much you need for a down payment. And if you’ve heard from your cousin’s friend’s aunt that you need 20% saved before you even think about buying… let’s bust that myth right now.
Because the truth is, most buyers don’t put down 20% – especially first-time buyers. And more importantly, there are a ton of resources and flexible loan options that can help you get into a home sooner than you might think.
Not nearly as much as you think. According to the National Association of Realtors, the average down payment for first-time buyers has stayed between 6% and 9% for years. In fact, it’s never even hit 10% in the last few decades.
Repeat buyers (aka people who are selling and then buying again) typically put down more – around 23% on average last year – largely because they’ve built up equity in their current homes. But for first-time buyers? The bar to entry is much lower than most people realize.
You’ve got options – and that’s good news. Most buyers use conventional loans, but government-backed programs like FHA loans (with just 3.5% down) and VA loans (which require no down payment at all) make buying more accessible.
If you’re not sure what you’d qualify for, a local lender can walk you through it – and we’re happy to connect you with someone great. You can also check out the Down Payment Resource – an interactive tool that helps you find local and state assistance programs for everything from down payments to renovations.
Saving is still the top method, with about 70% of first-time buyers using personal savings as their down payment source. But it’s far from the only way buyers are pulling it off.
Some are using gifts from family or friends (25%), tapping into investments (stocks, crypto, 401(k)s), or even using inheritances. As home prices rise, we’re seeing more buyers use a mix of sources to make their homeownership dreams a reality.
The bottom line? You don’t need to wait until you’ve saved 20%. In fact, waiting too long might mean missing out on the perfect opportunity.
If you’ve been on the sidelines because of what you think you need to buy a home, let’s talk through what it could really look like. We’ll help you understand your options, connect you with a trusted lender, and build a plan that works for your budget and goals.
Buying a home might be more within reach than you realized.