You don’t need a 20% down payment to buy a house, despite what you may have heard. However, you will need a good amount of cash — usually tens of thousands of dollars.
Just how much should you be saving up, though? Is it worth putting down more than the minimum down payment? That depends on your loan program, budget, location, and other factors. Here’s what the average home buyer sets aside for their down payment, as well as median down payments by metro area. Use these as a guideline when planning your home purchase.
Learn more: How to get a mortgage with a 1% down payment
In this article:
- Average down payment in 2024
- Average down payment by buyer type
- Average down payment by location
- Down payment requirements
- FAQs
What is the average down payment on a house in 2024?
As of June 2024, the median down payment on a house in the U.S. was $67,500, according to real estate company Redfin. That’s up nearly 15% from just one year prior and the highest nationwide down payment in at least the last 13 years. (Redfin started tracking typical down payments in 2011.) Median down payments have now risen year over year for 12 months in a row.
The jump is largely a product of higher home prices. Since down payments are based on a percentage of the sales price, when home prices rise — as has mostly been the case over the last decade or so — loan amounts and down payments increase too.
Borrowers have been offering larger down payment percentages lately as well. According to Redfin, the typical home buyer is putting down 18.6% on their purchase price, up from 15% in June 2023. This is also much more than the minimum required. (Many conventional loans require just 3% down.)
Average down payment by buyer type
The above is the median down payment nationwide across all borrowers. But, if you break it down by buyer type, first-time home buyers tend to put down much less than those who have purchased a home before.
In 2023, the typical down payment for a first-time home buyer was 8% — the highest since 1997, according to the National Association of Realtors. The typical repeat home buyer paid more than double that, putting down 19%.
Average down payment by location
Since home prices and housing market conditions vary by location, down payments can differ quite a bit too. According to Redfin, down payments in Newark, N.J., have increased the most, jumping 51.5% in just the last year. The median down payment in Newark is $125,000.
Other cities with big increases in down payment size include Las Vegas, Nashville, Washington, D.C., and New Brunswick, N.J. Down payments only dropped in three places over the last year: Oakland, Tampa, and Jacksonville, Fla.
See below for a look at major metros and what down payments currently look like in the area:
Read more: How to qualify for down payment assistance programs
Down payment requirements
The amount you’re required to put down on a home depends on the loan program you’re using. Here are the minimum down payment requirements by type of mortgage:
- Conventional loan: 3%
- FHA loan: 3.5% with a 580 credit score or 10% with a score between 500 and 579
- VA loan: 0%
- USDA loan: 0%
How competitive your housing market is also plays a role. If there are few homes on the market and bidding wars are common, you may need to make a higher offer to win a house. This might require increasing your down payment amount as well.
Average down payment FAQs
What is a typical down payment?
As of June 2024, the typical down payment on a house was 18.6% — or $67,500 nationwide. Down payments vary widely by location, though. In San Jose, Calif., for example, the typical down payment is $451,500. In Virginia Beach, Va., it’s just $9,195.
How much of a down payment do I need on a $300,000 house?
That depends on your loan program. With a conventional loan, you’ll need at least 3% ($9,000) to qualify. On an FHA loan, it’s 3.5% to 10.% ($10,500 to $30,000), depending on your credit score.
Is a 20% down payment realistic?
Many home buyers make 20% down payments, and doing so will reduce the amount you need to borrow, lower your long-term interest costs, and help you avoid private mortgage insurance (at least on conventional home loans). Still, it’s not the right move for everyone. You should consider your budget, savings, and goals as a home buyer before determining how much to put down.
Is $10,000 enough for a down payment?
It could be, but it depends on the home sales price and which mortgage loan program you’re using. With a conventional loan, you need at least 3% of the purchase price to qualify, so a $10,000 down payment would only work on a home priced at $333,000 or less (333,000 x 0.03 is $9,990).
This article was edited by Laura Grace Tarpley.
