Find out how much the average down payment on a house is in this guide. Explore home loan types, what home buyers should expect, and more
The average down payment on a house continues to impact the way home buyers approach real estate purchases. For mortgage brokers, knowing the current figures, market trends, and client expectations can strengthen how you advise and guide borrowers.
In this article, Mortgage Professional America will talk about the average down payment on a house as well as the factors that influence it. We will also provide valuable insights so that you’ll know how you can better support your clients in different scenarios.
Understanding the average down payment in the US
The average down payment can vary based on many factors. These include:
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Home buyer type: First-time home buyers might put down less if they have less money saved. On the contrary, repeat clients often use equity from a previous sale
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Property location: Homes in high-cost areas will obviously require bigger down payments
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Credit score: A higher credit score can qualify your clients for property loans with smaller down payment requirements. Those with lower credit scores might need more upfront
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Home prices: Expensive homes lead to costlier down payments, even at the same percentage. For example, a 10 percent down payment on a $900,000 home is still $90,000
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Mortgage type: Some home loans allow little to no down payments while other types might require more, especially to avoid private mortgage insurance (PMI)
According to the National Association of Realtors (NAR), first-time buyers in the US made an average down payment of 15 percent in 2025. These figures represent a steady return to pre-pandemic patterns, though regional differences remain.
What is an average house down payment?
The widely believed standard is 20 percent, but your clients can choose to put down less. Many borrowers can even qualify for property loans with lower down payment requirements, particularly with government-backed options.
Should your clients put down a 20% down payment?
As mentioned, the average down payment on a house in the US is 15 percent. This means that it’s totally normal for your clients to put less than 20 percent down. However, making a 20 percent down payment can still have many potential benefits and savings for your clients.
For instance, they can consider this benchmark to avoid PMI. Doing so can help them save hundreds or even thousands of dollars. This is because PMI usually adds 0.5 percent to 1.5 percent of the home loan amount per year to their mortgage payments.
A larger down payment can also reduce both the loan amount and total interest paid. This can lead to lower monthly payments and greater financial flexibility. With a 20 percent down payment, your clients will own more of the property right from the start. This will make them less likely to owe more than it's worth if prices fall.
How the average down payment has changed over time
In the early 2000s, the average down payment on a house dropped as zero-down mortgages became common. After the 2008 housing crisis, banks and mortgage lenders tightened their guidelines. As such, down payment expectations rose. Over the past decade, easing credit and the rise of first-time buyer programs brought averages back down.
The COVID-19 pandemic pushed home prices upward and prompted many property buyers to make larger offers to win bidding wars. But high mortgage rates in 2023 and 2024 have cooled demand, resulting in a more balanced market and stabilizing down payment amounts.
Average down payment by mortgage type
Each home loan type comes with its own set of minimum requirements, which affects down payment behavior. Here's how the average down payments on properties vary across major loan programs:
- Conventional loans
- FHA loans
- VA loans
Let’s check them out one by one:
1. Conventional loans
This type of mortgage is popular among home buyers with strong credit. The minimum down payment can be as low as 3 percent. However, conventional borrowers can choose to put down at least 20 percent to avoid PMI, which adds to monthly costs.
2. FHA loans
The Federal Housing Administration backs property loans that require a minimum down payment of 3.5 percent. This can be attractive for your clients, especially for those with limited savings. But if their credit score is less than 580 (500 to 579), your clients will have to make a 10 percent down payment.
3. VA loans
For eligible veterans, service members, and qualifying spouses, VA loans offer the option to buy a home with no down payment. Backed by the US Department of Veterans Affairs (VA), this mortgage type also doesn’t require PMI. Your clients can take full advantage of these benefits while still accessing competitive interest rates and flexible credit requirements.
To know more about VA loans, watch this:
To guide your clients better, you need to look at some of the issues that veterans face when taking out VA loans.
Is $10,000 a good down payment on a house?
The average down payment can vary depending on the loan type and the current market conditions. Advise your clients to prepare a down payment of anywhere from $10,000 to $15,000 at least.
Should clients put more than the average down payment?
Whether it makes sense for your clients to put down more than the average down payment on a house depends on many considerations. Guide them in weighing the pros and cons. A larger down payment can lower the loan amount and reduce monthly payments. It can also limit the total interest paid over the life of the loan. It may also help buyers qualify for better terms.
But waiting to save a larger down payment isn't always the best move. Your clients might end up spending more on rent while they wait or miss opportunities. In some cases, it can be more practical to enter the market sooner with a smaller down payment.
There’s no fixed rule when it comes to down payment size. What works for one client might not work for another. Saving beyond the average might offer long-term advantages, but it can also tie up funds that might be needed. As such, you should advise your clients to think about external spendings such as moving costs, home maintenance, or unexpected expenses.
As a mortgage broker, one good approach is to review your clients’ full financial profile. Help them strike a balance between what they can pay now and what they'll be comfortable with later. A smart down payment strategy should reflect both their current circumstances and future plans.
What are your thoughts about the average down payment on a house? Should it be higher or lower? Tell us in the comments below
