Homebuyers still have down payment misconceptions

NAR said the typical down payment for first-time buyers has remained between 6% and 9% since 2018. For repeat buyers, the figure was significantly higher last year at 23% — a reflection of rising home equity over time.

In contrast, repeat buyers put down just 13% in 2014, Lautz said.

Since NAR began collecting data in 1989, the median down payment for first-time buyers has never exceeded 10%.

“This critical knowledge informs the potential buyer on just how much to save and — just as importantly — how long that process may take,” Lautz said.

Financing options, misplaced guidance

Conventional loans remain the most common path to homeownership, but many first-time buyers also turn to government financing.

Nearly 29% of first-time buyers used Federal…