Many first-time homebuyers believe they need a large down payment to buy a home, often thinking 20% is required.
But in today’s market, that’s not always the case.
Understanding how down payments really work can make buying a home more achievable than you might expect.
According to Google Trends, online searches for down payment information recently hit an all-time high. And that’s a clear sign more buyers are trying to figure out what they really need to save before making a move (see graph below):
If you’re wondering the same thing, you can always turn to the internet for answers. But a lot of the time, it’s better to ask a local expert. Because here’s what a pro would tell you.
The 20% Down Payment Myth
The idea that you need 20% down to buy a home is one of the biggest misconceptions around the homebuying process. And the data debunks the myth.
While there are benefits to putting that much money down, most first-time buyers put down far less.
Here’s why. Unless it’s stated by your lender, you typically don’t have to have a 20% down payment. There are even some loan options designed to help you get into a home with a much smaller upfront cost. As the Mortgage Reports explains:
“The amount you need to put down will depend on a variety of factors, including the loan type and your financial goals. If you don’t have a large down payment saved up, don’t worry—there are plenty of options available, and you don’t need to put down the traditional 20% . . . many homebuyers are able to secure a home with as little as 3% or even no down payment at all . . .”
For example, FHA loans allow down payments as low as 3.5%, while VA and USDA loans offer zero down payment options for qualified applicants, like Veterans.
And those options are just one reason so many first-time buyers are able to buy without a 20% down payment.
What Buyers Are Actually Putting Down
So, if buyers aren’t doing 20%, how much do they actually put down?
According to the National Association of Realtors (NAR), the median down payment for first-time homebuyers is only 10%. That’s half of what you probably expected.
That means if you’re aiming to save 20% because you think you have to, you may be setting a timeline that’s longer than necessary.
And here’s some more good news. It’s not only that you may be able to buy with less money down than you thought, but there are also options to help you get to your down payment goal even faster.
Down Payments Are Getting Smaller
There’s more encouraging news for today’s buyers. Recent housing market data shows many people are purchasing homes with smaller down payments than they were just a year ago.
According to Realtor.com, the typical buyer put down about $23,400 in early 2026. That’s roughly $5,000 less than the previous year, representing a 19% year-over-year decrease and the lowest typical down payment since 2021.
Several factors are contributing to this trend:
- Buyer competition has become more balanced in many housing markets.
- Home price growth has moderated compared to the rapid increases seen over the past few years.
- More buyers are choosing FHA, VA, and other loan programs that require lower down payments.
While buying a home still requires careful financial planning, these trends show that many buyers are finding ways to purchase a home without waiting years to save a large down payment.
Why You Should Look into Down Payment Assistance Programs
There are a lot of programs designed to help you save for a down payment – and they can make a big difference in how fast you hit your savings target. Unfortunately, buyers don’t realize how many there are, or that they may qualify for help.
In markets like Chicago, many of these programs are available to qualified buyers and can help reduce the upfront cost of buying a home.
Research from Realtor.com shows almost 80% of first-time homebuyers may qualify for down payment assistance, yet only a small percentage actually use these programs. Many buyers simply don’t realize they’re eligible until they speak with a lender or experienced real estate professional.
And that’s another big miss holding would-be buyers like you back.
In the U.S., there are over 2,600 homeownership programs available, many offering significant financial support. As Down Payment Resource shares:
“With an average benefit of $18,000, down payment assistance (DPA) remains one of the most essential tools for addressing the nation’s affordability challenges. Programs continue to expand in scope, serving a broader range of incomes, property types and borrower needs, including first-generation, military and repeat buyers.”
Imagine how much further your savings could go with an extra $18,000 you can use to buy. In some cases, you may even be able to stack multiple programs, giving what you’ve saved an even bigger boost.
Family Support Can Help You Buy Sooner
For some buyers, help comes from family members. Parents and grandparents are increasingly helping loved ones with down payments, closing costs, or other upfront expenses.
If that option is available to you, combining family support with today’s loan programs and down payment assistance could make buying a home possible sooner than you expected.
Talk to a Real Estate Expert About Down Payment Options
You may not need a 20% down payment to buy a home. Between today’s loan programs, down payment assistance opportunities, and changing market conditions, buying a home could be more achievable than you think.
Before you decide to keep renting or delay your plans, connect with an experienced real estate professional who can help you understand your options, estimate your upfront costs, and guide you through the homebuying process with confidence.
Key Takeaways
- You don’t need a 20% down payment to buy a home.
- Most first-time buyers put down much less.
- Down payments are smaller than they were a year ago.
- FHA, VA, and other loan programs reduce upfront costs.
- Down payment assistance may help you buy sooner.
- Family support can also make homeownership more affordable.