How Much Is the Average Down Payment on a House?

Find Out if You Should Make a Larger or Smaller Down Payment

A down payment is the amount of money you put down to buy a house. It goes toward the total purchase price of your home and reduces the amount you have to borrow from your mortgage lender.

Some buyers assume they need a 20% down payment to buy a home because putting less down can result in fewer loan options and sometimes higher costs. However, many people purchase homes with just a much smaller down payment, or sometimes even none at all.

This guide will answer the question of how much a down payment on a house is in most situations, as well as details to help you understand how much is right for you.

What Is a Typical Down Payment on a House?

According to the National Association of Realtors:

• The typical down payment on a house for first-time buyers has ranged between 6% and 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%.

This number increased for repeat buyers, though. The National Association of Realtors reported in 2025 that repeat buyers generally put down a 23% down payment in the prior year.

This is a big jump from 2015, when repeat buyers generally put down around 13% of the home's purchase price as payment. The increase in larger deposits for repeat buyers is likely driven by home equity growing rapidly in recent years. Existing homeowners can sell their current homes and use the equity as a larger down payment for their next property.

These numbers don't mean you need this much as a minimum down payment on a house. In fact, you usually don't even need to make the average down payment on a house. Your mortgage lender will tell you how much you need to put down given your overall financial credentials and the kind of loan you’re interested in.

Minimum Down Payment for a House Based on Loan Type

When you are applying for home loans, you must meet your lender’s minimum down payment requirements. These minimum requirements vary based on loan type.

• 0% down with a VA loan: If you qualify for a VA loan, a loan backed by the Department of Veterans Affairs, you can usually buy a home without a down payment. However, your down payment affects how much you’ll pay for the funding fee that comes with VA loans.
• 0% down with a USDA loan: These loans backed by the U.S. Department of Agriculture help people in rural and suburban communities become homeowners. Many who qualify for USDA loans can buy a home without a down payment.
• 3% down with a conventional loan: You don’t need a 20% down payment for a conventional mortgage loan. However, a 20% down payment will help you avoid private mortgage insurance. If your conventional loan is an adjustable-rate mortgage (ARM), your lender may require a larger down payment as well.
• 3.5% down with an FHA loan: The FHA loan program by the Federal Housing Administration helps make buying houses more affordable. If you qualify for an FHA loan, then you can make a down payment as low as 3.5%. Keep in mind that the cost of mortgage insurance premiums is affected by the size of your down payment.
• 10% down with a jumbo loan: Lender requirements vary for jumbo loans, which are loans that are larger than standard conventional loans. Most lenders require a minimum of 10%, and some have even higher requirements, although it may be possible to find a lender offering a lower rate with careful research.

Down Payment Example

Higher down payments result in higher upfront costs for borrowers, but they can keep your costs down over time since you are borrowing less principal.

So, how much is a typical down payment? Let's look at how much a down payment could cost the borrower of a median-priced home, which is defined as a $410,800 home in mid-2025 according to the Federal Reserve Bank of St. Louis.

Other Factors That Can Impact Down Payment Amount

How much you need to save for a down payment on a house is impacted by 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 will usually need to buy mortgage insurance. FHA loans require up front and annual mortgage insurance and, depending on your down payment, you may have to carry this insurance for the life of the loan. Conventional lenders also require private mortgage insurance for down payments under 20%. If you want to avoid the added costs of this insurance, you'll need 20% down. Keep in mind that this insurance can be removed once you reach 20% equity in your home, so it is not permanent.
• 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 are a higher-risk borrower.
• Lender requirements: Lenders differ in their down payment requirements. The larger your down payment, the more lenders you will have who 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.

How To Determine Your Down Payment Amount

Ultimately, every home buyer will need to decide for themselves what down payment amount makes sense for them. Here are some questions you ask yourself when making this decision.

How Much Can You Comfortably Afford Each Month?

A larger down payment can lower your monthly mortgage costs, both by reducing your principal balance and by helping you qualify for a lower mortgage rate. Use our mortgage payment calculator to see what you can afford in your budget and to see how a down payment affects the amount you'll pay.

Do You Have Money for Emergencies?

Life is full of events like house repairs, car repairs, health problems, and job changes. Financial professionals recommend keeping cash reserves for emergencies, ideally enough to cover 3 to 6 months of living expenses. Think about how much money you want to save for unexpected problems before you make a down payment. You don't want to put all your spare cash down on your home only to have an emergency you can't cover.

How Long Will You Live in the Home?

If you plan to live in your home for a long time, a larger down payment can help you save money on interest. That's because you’ll pay the mortgage for many years, and the less money you borrow, the less interest you pay. If you think you’ll own the home for just a few years, however, a larger down payment might not make as much sense.

See for yourself how much a smaller or larger down payment affects your monthly payments and savings with our mortgage down payment calculator.

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 down payment of 20% is a good down payment on a house as it allows you to avoid added mortgage insurance expenses and get a loan from 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, there are options like USDA and VA loans that allow you to avoid a down payment. You will usually pay more in fees and upfront costs, as well as ongoing interest costs, on loans with an absent or low down payment.

Are There Down Payment Assistance Programs?

In some cases, you may be able to qualify for a down payment assistance program, especially if you are 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 mortgage payments 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?

It's very important to carefully consider how much money you should put down on a house. A mortgage loan professional can help you make this decision, given your finances and lender policies. Reach out to Freedom Mortgage today to get prequalified for a home loan and to get help deciding what down payment makes sense for you.