The majority of home buyers—87%—finance their home purchase. But some aspiring buyers may delay their purchase due to persistent myths over down payment requirements.
Thirty-five percent of consumers believe they need a down payment of 16% to 20% of the purchase price. Ten percent believe they need more than 20% for a down payment to purchase a home, according to survey data from the National Association of REALTORS®. Home price increases in the double digits over the past year alone make saving for such a large down payment an even tougher hurdle.
However, the typical down payment is much lower. For first-time home buyers, the average down payment over the last three years has ranged between 6% and 7%.
There is financing available to those who qualify for as little as 3% down.
