How Much Do I Need For a Down Payment?

A common question for those looking for a home, or at least figuring out a budget for the home shopping process is how much they need for a down payment. We always encourage our home buyers to talk with a lender before shopping. It’s always best to be pre-approved for a specific budget and to know these numbers before even looking.

The national average for down payments is 11%. But that figure includes first time and repeat buyers. So let’s take a closer look.

While the broad down payment average is 11%, first time homebuyers usually only put down 3 to 5% on a home. That’s because several first-time home buyer programs don’t require big down payments. A longtime favorite, the FHA loan, requires 3.5% down. There are even some programs that allow down payment contributions from family members in the form of a gift.

Some programs require even less. VA loans and USDA loans can be made with zero down. However, these programs are more restrictive. VA loans are only made to former or current military service members. USDA loans are only available to low to-middle income buyers in USDA-eligible rural areas.

If you have any questions about the the home loan process or want to know what options are available to you, feel free to contact us. We are happy to connect you with one of our preferred lenders.