Are Misconceptions Around Down Payments Keeping You From Buying Your First Home?

  • Heather Smith
  • 02/1/22

Most first-time homeowners think they need a substantial down payment in order to purchase a home. According to recent data from the National Association of REALTORS®, 35 percent of consumers believe that they need between 16 percent and 20 percent of a home’s purchase price for a down payment—and another 10 percent of consumers think they need more than a 20 percent down payment when buying a home.

But is that actually true? Do you actually need a high down payment in order to buy your first home?

As it turns out—maybe not.

While every home sale is different, most first-time buyers put significantly less than 20 percent towards their down payment—and are still able to successfully purchase a home. According to NAR’s data, since 2018, the average down payment for first-time homebuyers has fallen to between 6 percent and 7 percent.

The Takeaway:

Saving up 6 to 7 percent of a home’s purchase price is a lot more attainable than 20 percent. So, if you’ve put off purchasing a home because you thought you needed 20 percent (or more!) as a down payment, it may be time to let go of that misconception, reconsider your strategy, and start thinking about buying your dream home.

Work With Heather

For most families, choosing a new home is the biggest financial decision they will ever make. There are many complicated decisions involved in choosing a home. As one of the top real estate professionals in the local market, I'll negotiate the best prices and terms for you and answer all of your questions as they arise.

Let's Connect