Is There Actually Such a Thing As a Typical Down Payment on a House?
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Alesandra Dubin, Contributing AuthorClose
Alesandra Dubin Contributing AuthorAlesandra Dubin is a lifestyle journalist and content marketing writer based in Los Angeles. Her vertical specialties include real estate; travel; health and wellness; meetings and events; and parenting. Her work has appeared in Business Insider, Good Housekeeping, TODAY, E!, Parents, and countless other outlets. She holds a master's degree in journalism from NYU.
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Alexandra Lee, Associate EditorClose
Alexandra Lee Associate Editor
Alexandra is an associate editor of HomeLight.com. Previously, she served as a writer and social media manager at Santa Barbara Life & Style Magazine, in addition to interning at the nonprofit honors society Phi Beta Kappa. Alexandra holds a bachelor's degree in communication and global studies from UC Santa Barbara, and she has three years of experience reporting on topics including international travel, luxury properties, celebrity interviews, fine dining, and more.
If you spend a lot of time crunching numbers in your head trying to estimate what you’d need to save up for a down payment on a first home, you might just be spinning your wheels. That’s because there are a lot of myths and misconceptions out there about what’s really required for a down payment. For instance, if you think you’ll absolutely need 20% down to get a loan and get competitive on a home…think again.
The fact is, homeowners aren’t exactly chatting among friends in casual conversation about how much they put down on their house, so it’s hard to know what’s normal and what isn’t in housing markets around the country and for buyers’ diverse situations. But it’s useful to know — and hear straight from the mouths of the pros — that the notion of 20% down is not a uniform requirement across the board, nor is it even the right choice for everyone.
Of course, when you’re buying a home, you’ll want to get educated and strategic about down payments. You want to make sure you don’t put down too low a down payment because you could end up overextending yourself on your monthly mortgage payment. At the same time, you don’t want to face the task of saving indefinitely for such a daunting down payment that it prices you out of the housing market entirely.
How Much Should You Put Down on a House?
Estimate how much you should put down on a home and learn more about the loan options that work best for you with HomeLight’s Down Payment Calculator.
So, what is a typical down payment on a home, and what should you plan to bring to the table? Here, we break down the facts with expert feedback to arm you with down payment intel you can use in your specific situation.
At a glance: Down payment comparison table
Seeing down payments in percentages can feel abstract. Below is a breakdown of what those percentages actually look like in cash for various common home price points.
| Home Purchase Price | 3% Down Payment | 10% Down Payment | 20% Down Payment |
| $300,000 | $9,000 | $30,000 | $60,000 |
| $450,000 | $13,500 | $45,000 | $90,000 |
| $600,000 | $18,000 | $60,000 | $120,000 |
| $800,000 | $24,000 | $80,000 | $160,000 |
Note: These figures represent the cash needed for the down payment only and do not include closing costs, which typically range from 2% to 5% of the purchase price.
What was a normal down payment for first-time buyers in 2025?
The typical down payment for first-time homebuyers in 2025 was just 10% — significantly lower than the daunting 20% down.
According to the National Association of Realtors (NAR) Home Buyers and Sellers Generational Trends, 74% of all homebuyers financed their purchase last year. In order to finance their down payment, 59% of first-time buyers used personal savings; 26% used financial assets, such as a 401(k), stocks, or cryptocurrency; and 22% used gifts or loans from family and friends.
“There are a lot of programs for first-time homebuyers,” says Toni Zarghami, a top-selling agent from the Zarghami Group serving the Sarasota, Florida area. So, you have options when it comes to making a down payment that’s right for you. To see how much you might need, try our down payment calculator below:
Some of your down payment assistance program options include:
- Grants
- Matched savings
- Loans
- Forgivable loans
- Deferred loans
- Low-interest loans
What was a normal down payment for repeat buyers in 2025?
According to the NAR report, the typical down payment for repeat homebuyers was 23% — the highest since 2003.
While the average age of a first-time home buyer is at an all-time high of 40 years old, repeat buyers have a median age of 62. Buyers at this age who are looking for a retirement home or downsizing have usable equity from their previous home or disposable income to pay for the house in cash. According to NAR’s data, 30% of repeat buyers paid all cash.
“Unfolding in the housing market is a tale of two cities,” explained NAR deputy chief economist and vice president of research Jessica Lautz. “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.”
What is the typical down payment in 2026?
According to a December 2025 report, the median down payment nationwide was $64,000. The median home sale price for Q4 2025 was $405,300. This means that the typical down payment is currently about 15.79%.
Some of the states with the highest down payments include California, Hawaii, and Massachusetts, while some of the lowest down payments can be found in West Virginia, Mississippi, 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 circumstances, here are some guidelines for 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 credit score of 500 to 579, you can qualify for an FHA loan with 10% down. Note that all FHA loans require mortgage insurance (conventional loans with low down payments 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.
Pros and cons of a large vs. small down payment
Choosing how much to put down is a balancing act between your monthly budget and your long-term financial goals. Here is how the two strategies compare:
Option A: Making a large down payment (20% or more)
| Pros | Cons |
| Avoid PMI: You skip the monthly cost of Private Mortgage Insurance (saving $100–$300+ per month).
Lower Monthly Payments: A smaller loan balance means more manageable monthly bills. Lower Interest Rates: Lenders often offer better rates to borrowers with more “skin in the game.” |
House Rich, Cash Poor: You may deplete your emergency fund or savings for home repairs.
Opportunity Cost: Money tied up in home equity might earn a higher return if invested in the stock market. |
Option B: Making a small down payment (3% to 10%)
| Pros | Cons |
| Buy Sooner: You don’t have to spend years saving while home prices (and interest rates) potentially rise.
Keep Your Cash: You maintain a “cushion” for emergencies, furniture, or renovations. |
PMI Costs: You will likely be required to pay for mortgage insurance until you reach 20% equity.
Higher Lifetime Interest: Since you are borrowing more, you will pay significantly more in interest over the life of the 30-year loan. |
How much down payment should you plan for?
According to the 2026 NAR report, 59% of first-time buyers pulled their down payment from their personal savings. Several factors can delay a prospective buyer’s decision to buy a house, including current interest rates, economic uncertainties, and availability of funds. For many first-time homebuyers, saving for a down payment can be one of the most challenging steps of the homebuying process.
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 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.
Header Image Source: (fran hogan / Unsplash)
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