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

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.

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.

What was a normal down payment for first-time buyers in 2023?

According to the National Association of Realtors (NAR) 2023 Profile of Home Buyers & Sellers, 80% of both first-time and repeat homebuyers financed their purchase. In order to finance their down payment, 23% of first-time buyers used gifts or loans from family or friends, while 11% relied on the sale of bonds or stock, 9% used 401k or pension, and 2% used IRA funds.

The typical down payment for first-time homebuyers in 2023 was just 8% — significantly lower than the daunting 20% down.

In short, “There’s a lot of programs for first-time homebuyers,” says Toni Zarghami, a top-selling agent in the Sarasota, Florida area. So, you have options when it comes to making a down payment that’s right for you.