Ask The Lender: How Much Do I Need For A Down Payment?

One of the biggest questions homebuyers ask is: “How much money do I actually need for a down payment?” The good news is that many buyers need far less than they think. “One of the most persistent misconceptions among aspiring homeowners is that a 20% down payment is required to buy a home,”¹ Many first-time buyers purchase homes with much smaller down payments.

What’s Typical in Today’s Market?

According to NerdWallet, the median down payment for all home buyers is 19%. For first-time home buyers, it is currently 10%, while repeat buyers average 23%.² Many loan programs are specifically designed to help buyers get into a home sooner.³ Learn more here.

The Biggest Mistake Buyers Make

Many potential buyers assume they need perfect finances before starting the process. In reality, speaking with a lender early can help you understand your options and create a personalized savings plan.

Jessica Lautz, Deputy Chief Economist for the National Association of Realtors, noted that “We’re seeing buyers with significant housing equity making larger down payments and all-cash offers, while first-time buyers continue to struggle to enter the market.”⁴

There’s no one-size-fits-all answer when it comes to a down payment. The “right” amount depends on your financial goals, monthly budget, and the type of loan you choose. For many buyers, homeownership may be closer than they think. If you’re wondering how much you may need to purchase a home, we are here to walk through your options and help you build a plan that fits your goals.

¹https://www.housingwire.com/articles/down-payment-misconceptions-among-homebuyers-nar/

²https://www.nerdwallet.com/mortgages/learn/average-down-payment-on-a-house

³https://www.nar.realtor/magazine/real-estate-news/nar-2025-profile-of-home-buyers-sellers-reveals-market-extremes

⁴https://www.fairway.com/articles/conventional-loan-down-payment-how-much-do-you-need