What Is the Average Down Payment on a House?
Key Takeaways
- First-time homebuyers typically put down 6% to 9%, while repeat buyers often make larger down payments.
- Minimum down payment requirements can range from 0% to 10% or more, depending on the type of mortgage you apply for.
- A larger down payment can reduce your monthly payment, interest costs, and potential mortgage insurance expenses.
- Your ideal down payment should leave room for closing costs and other financial goals.
A down payment is the portion of a home’s purchase price that you pay at closing. Although you’ll often hear that you need a 20% down payment to buy a house, many homebuyers put down much less. Some qualified borrowers may even be eligible for a mortgage with no down payment.
The right amount depends on the mortgage you choose, your finances, and your homeownership goals. Let’s look at the minimum requirements by loan type and how a larger or smaller down payment could affect your overall borrowing costs.
How Much Is a Typical Down Payment on a House?
According to the National Association of Realtors (NAR), the typical down payment for first-time homebuyers has ranged from 6% to 9% between 2018 and 2025. Since this measure was first tracked in 1989, the typical down payment on a home for a first-time buyer was never higher than 10%.
That number increased for repeat buyers, though. The NAR reported in 2025 that repeat buyers generally made a 23% down payment in the prior year.
This is a big jump from 2015, when repeat buyers generally put down about 13% of the home’s purchase price. The increase in larger deposits among repeat buyers is likely driven by rapid home equity growth in recent years. Existing homeowners can sell their current homes and use the equity as a larger down payment for their next property.
Average Down Payment vs. Required Down Payment
The average down payment reflects what other homebuyers typically pay, not necessarily what your lender will require. Your minimum down payment depends on factors like your loan type, eligibility, and overall financial qualifications. Some mortgages require little to no money down, while others have higher minimums.
You can also choose to put more money down than your lender requires. A larger down payment can reduce your monthly mortgage payment and the amount of interest you pay over time. Under some circumstances with a large down payment, you might be able to eliminate private mortgage insurance.
However, a smaller down payment may help you buy sooner or preserve more of your savings for other financial goals. Some qualified borrowers may even consider buying a home with no down payment.
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How to Calculate Your Down Payment Amount
To calculate your down payment amount, start by checking the minimum down payment required for your loan type. From there, you can consider how other factors could affect the amount you need.
1. Know the Minimum Down Payment Requirements by Loan Type
When you’re applying for home loans, you must meet your lender’s minimum down payment requirements, which vary based on loan type.
2. Consider Other Factors That Can Impact Down Payment Amount
How much you need to save for a down payment on a house depends on more than the home price and loan options. Here are some other factors that can affect how much you’ll need to put down:
- Mortgage insurance: When you make a smaller down payment, you’ll usually need to buy mortgage insurance. This insurance can make homeownership more accessible by allowing you to qualify for a mortgage with a smaller down payment.
- Personal finances: Your credit score, amount in savings, and debt-to-income ratio (DTI) can impact the kinds of loans you qualify for, and therefore the amount you need to put down. If you have a low credit score or a lot of debt, lenders may want you to put more down because you’re a higher-risk borrower.
- Lender requirements: Lenders differ in their down payment requirements. The larger your down payment, the more lenders will work with you.
- Appraised value: If your home appraises for less than you are paying for it, you may need to put more money down in order to meet your lender’s maximum loan-to-value ratio requirements.
3. Review Your Finances and Homeownership Goals
Ultimately, you don’t always get to choose your down payment amount. But when you do, you’ll need to decide for yourself what amount makes sense. Here are some questions you can ask yourself when making this decision:
- How much can you comfortably afford each month? A larger down payment can lower your monthly mortgage payment.
- How much will you pay over the life of the loan? Putting more money down could reduce how much you pay in interest over time.
- Do you have money for emergencies? Consider keeping enough savings on hand to cover three to six months of living expenses and unexpected costs.
- How long will you live in the home? A larger down payment might make sense if you plan to stay in the home for a long time.
Pro Tip
Use our down payment calculator to see how your down payment amount affects your monthly mortgage payment and other mortgage costs over time.
Down Payment Example
Higher down payments mean higher upfront costs for borrowers, but borrowing less principal can reduce monthly principal and interest costs. Review the example below to see how different down payment amounts could affect monthly principal and interest. This example assumes a home price of $410,800 with a 30-year fixed-rate mortgage at a 6.5% interest rate:
Hypothetical example for illustrative purposes only; not a commitment to lend or an offer of currently available terms. Rates, payments, terms, and savings shown are hypothetical figures selected solely to illustrate how mortgage costs and terms can vary, and do not reflect an actual loan offer.
Average Home Down Payment FAQs
Still need to know more? Read the answers to frequently asked questions about how much of a down payment you should put down on a house.
What’s a Good Down Payment on a House?
A 20% down payment is a good amount on a house, as it allows you to avoid additional mortgage insurance and access the widest choice of lenders. However, many people put down much less, and it is usually possible to qualify for a mortgage with as little as 3% down from some lenders if you have solid financial credentials.
Are Down Payments Always Required on a House?
Most lenders require at least some down payment on a house. However, options like USDA and VA loans allow you to avoid a down payment. You’ll usually pay more in fees and upfront costs, as well as ongoing interest costs, on loans with no down payment or a low down payment requirement.
Are There Down Payment Assistance Programs?
In some cases, you may be able to qualify for a down payment assistance program, especially if you’re a first-time buyer. These programs can come from lenders, nonprofits, or the government.
Is It Better to Make a Larger Down Payment?
It is generally better to make a larger down payment when buying a home, as a larger down payment helps you qualify for the best rates and allows for more loan options with different lenders. It can also lower your monthly mortgage payments and overall interest by reducing your balance and allowing you to avoid mortgage insurance costs. However, you also don’t want to drain your financial reserves, so aim to find a good balance.
Final Thoughts: How Much Should You Put Down on a House?
The right down payment depends on your loan requirements, budget, and long-term goals. Putting more money down may reduce your monthly payment and overall borrowing costs, but it’s also important to have enough savings for emergencies and other homebuying expenses.
A mortgage professional can help you compare your options and choose an amount that fits your finances. When you’re ready to explore your home loan options, get prequalified today with Freedom Mortgage.
Christine Rakoczy has been a financial writer since 2008, contributing to major publications, including Credit Karma, CBS MoneyWatch, WSJ, and Forbes Advisor. While her special focus is diving deep into mortgages, Christine has extensive experience with all types of financial topics.
In addition to writing for online articles, Christine has also taught business administration courses at a career college and has served as a subject matter expert on numerous business and legal courses.
Christine earned her JD from UCLA School of Law in 2008 and has a BA in English, Media, and Communications, with a Certificate in Business Administration from the University of Rochester.
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