Saving for a Down Payment

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.

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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.

Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.