Many first-time homebuyers believe that they need to be able to be able to finance a down payment of 20 percent to buy a house. However, according to data from the National Association of REALTORS®, a majority of homebuyers purchased their home with a down payment of 6 percent or less. The current national median existing single-family home price is $254,000, making the national median 6 percent down payment $15,240,
Smaller down payments can help renters who want to own a home obtain their American dream faster by reducing the amount of time it takes to build the necessary savings. Taking small steps such as giving up buying coffee or bringing a homemade lunch to work can help potential homebuyers put aside thousands without making huge lifestyle sacrifices.
Consult this “A Dollar a Day” infographic from NAR for ideas on how to how to save money towards a down payment. Ask lenders and financial planners about advice they would give potential homebuyers about financing a down payment. Talk to REALTORS® about any recommendations they give clients on the best way to save money for a home.