Common Downpayment Amount for First-Time Buyers is 3-5%

What is the average down payment amount among first-time home buyers? Well, it varies among regions, states, and neighborhoods. Don't let the national 15% down payment 'average' throw you off.  

The challenge of coming up with a substantial down payment should not keep you from taking the steps to own your own home. There are so many different programs with varying requirements, from low down payment loans to subsidies, monetary gifts from relatives, and zero-down payment options for veterans.

Actually, in some areas, and among younger buyers, 3.5% to 5% down payment, with the money being a gift from their parents, is pretty common. 

You can get money for a down payment in many different ways, and there are many options for low down payment loans, both conventional and FHA. Although some people think this is the biggest challenge to overcome, for most it is not. The biggest challenge can be having a low to below average credit score. Getting your credit score to an acceptable level will take an organized effort , and generally will take you several months to improve your profile.

The Consumer Financial Protection Bureau has a wealth of information available on their website to help consumers learn about home ownership and loan options.

We recommend contacting a lender to discuss where you are at present and what you need to do to qualify for a home purchase. A good lender will take the time to help you make a plan to achieve your goals. They will also let you know what you can afford to pay for a home and how much you will need for a down payment.

As always, don't hesitate to contact us for expert guidance.  That's what we do :-).