REALTORS® Report That Somewhat Over 30 Percent Of Buyers Make Downpayments In Excess Of 20 Percent

According to the latest REALTORS® Confidence Index survey, approximately one out of three buyers makes a down-payment of 20 percent or more on a home. The data indicate why we are concerned about proposals that would require minimum down payments of at least 20 percent: most people don’t reach that level. For a a first-time median income home buyer to buy a $150,000 home, well below 2010’s median price of $172,900, a 20 percent down-payment of $30,000 would be a major stretch.

The level of down-payment appears to be much less important than the credit-worthiness of the purchaser. As noted by NAR’s Chief Economist Lawrence Yun, after World War II approximately 4 million veterans purchased homes through the Veterans Administration with zero down-payments, and there were no major credit issues.