Is There Actually Such a Thing As a Typical Down Payment on a House?

What was a normal down payment for repeat buyers in 2023?

According to the NAR report, the typical down payment for repeat homebuyers was 19% — the highest ratio since 2005, when the norm was 21%. The majority of repeat buyers (53%) used proceeds from the sale of a primary residence to fund their down payment.

The average down payment reached a record high in fall 2023, with CoreLogic reporting that it increased across high, middle, and low price tiers alike. Down payments for low-tier homes (those priced at 75% or below the national median sales price) increased 11% year-over-year, climbing to nearly $30,000 in December 2023. Down payments for middle- and high-tier homes also increased by 6% and 8%, respectively.

What is the typical down payment in 2024?

According to real estate data firm ATTOM, as of May 2024, the median down payment nationwide was $60,202, while the median home sales price was $384,375. This means that the typical down payment is currently about 15.6%.

ATTOM data suggests that the states with the highest down payments include California, Hawaii, and Washington, while some of the lowest down payments can be found in Oklahoma, Iowa, and Arkansas due to median house prices and the cost of living.

Typical down payments depend on the current housing market. In riskier loan environments, lenders will increase the standards required to get a loan in order to protect themselves from the added risk. This means buyers will need higher credit scores and bigger down payments to get a loan, so some low down payment opportunities aren’t always available.

How do home buyers decide the down payment on a home?

So, it’s clear by now that the range of down payments varies significantly depending on the specifics of the buyer’s situation.

Depending on your own circumstances, here are some guidelines as to what you might expect to put down in combination with the type of loan that matches your personal homebuying profile.

0% down payment

If you’re a veteran, you might qualify for a Department of Veterans Affairs loan, or VA loan. For this kind of loan, you don’t need to put anything down as long as the sales price isn’t higher than the home’s appraised value.

3% down payment

With a 3% down payment, you’re looking at the starting amount typically required for conventional loans.

3.5% down payment

With a minimum credit score of 580, you can get a Federal Housing Administration (FHA) loan with a 3.5% down payment. The government backs these loans, made for homebuyers with low to moderate incomes.

10% down payment

With a minimum credit score of 500, you can qualify for an FHA loan with 10% down. Note that all FHA loans require mortgage insurance (conventional loans with low down payment require private mortgage insurance, or PMI). Borrowers with a down payment of less than 10% must maintain mortgage insurance for the entire loan term. However, if you put down 10% or more, you qualify to have the upfront mortgage insurance premium removed after 11 years, instead of paying it for the entire term of the loan.

20% down payment

If you can put 20% down on a home, you’ll get out of paying PMI or mortgage insurance premiums, which can add up over time. And you’ll be on the road to substantial equity much faster, of course.

But 20% of your new home’s value might represent a huge chunk of your available finances, and there are certainly cons to shelling out that much. For instance, you should avoid putting 20% down if doing so will tie up all of your funds so you have nothing left for emergencies, let alone for furnishings or appliances essential to fill your new home.

How much down payment should you plan for?

According to the 2023 NAR report, 54% of buyers pulled their down payment from their savings. 38% of first-time homebuyers reported that saving for a down payment was the most challenging step of the homebuying process, and financial sacrifices were necessary for the majority of first-time buyers — namely, reduced spending on entertainment, luxury items, and clothes.

But if you’re worried about saving for a down payment — and confused about what it should even be — your best bet for determining your own right approach to a down payment is getting with a local agent and lender and exploring specifics. You might find yourself pleasantly surprised at all the options available to you…and at how substantial the actual range is for a “normal” down payment.

“With an acceptable offer, sometimes sellers can even help you with your down payment, because they’ll give you a credit toward your closing costs,” Zarghami says.

Beyond that, she says, “There’s a lot of different ways to work it. The down payment does not have to come from your bank account — it can be gifted from friends or family members, or we can have sellers help out. So there’s a lot of different ways to go about it.”

There are many different ways to go about it, indeed — and at a significant range of down payment amounts, from 0% to 20% or more.

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