The Average Down Payment by Region (And How to Beat It)

Good news if you’re house hunting: the typical down payment just fell to $23,400—about 12.8% of the purchase price, per Realtor.com’s latest Down Payment Report. That’s the fourth quarterly drop in a row, and 19% less than buyers put down a year ago.

But what the national number hides is regional differences. Buyers in the Northeast are putting down a median of $57,600. In the South, it’s roughly a third of that.

Where you’re buying affects what you need to save, partly because home prices differ and partly because buyers in competitive markets put down a larger share of the price. Either way, there are more ways to shrink down payment numbers than most buyers realize.

Forget the old 20%-down rule. It hasn’t matched reality in years.

Nationally, the average down payment sat at just 12.8% in Q1 2026. First-time buyers put down a median of only 10% in 2025, matching the highest share since 1989 but still a fraction of the old benchmark, according to the National Association of Realtors’ 2025 Profile of Home Buyers and Sellers. Repeat buyers, who typically roll equity from a previous sale into their next purchase, put down 23%.

Most first-time buyers pull down payment money from personal savings. NAR found 59% used personal savings as a down payment source, while 22% got help from a gift or loan from family or friends.

Whatever mix of savings and family help you're working with, a home affordability calculator can show you how your income, debts, and down payment translate into an actual housing price range.

Down payments vary by region because they track local home prices and competition, so buyers in expensive, tight markets often put down a bigger share of a higher price. Here’s how wide the down payment gap gets (per Realtor.com’s regional breakdown for Q1 2026) and what each region's average share would mean on the same $431,400 house, the national median sale price as of July 2026, per NAR

• The Northeast: Still the most competitive region in the country, and the gap is widening. The typical down payment there has climbed 237% since 2019, far more than anywhere else.

• The South: Its more affordable, better-supplied market posted the steepest year-over-year decline of any region, and because the South accounts for roughly 45% of all U.S. home sales, that drop carries outsized weight in the national average.

If you're relocating for a lower cost of living, set your savings target based on the region you're moving to, not the national average. It's also a good time to compare mortgage lenders, since rates and fees vary by market too.

The first-time buyer share of the market fell to a historic low of 21% in 2025, per NAR. The buyers who are actually closing deals are disproportionately those with substantial savings, family help, or both. That pushes the group's median down payment higher, even as fewer first-timers make it to the closing table.

This matters if you're planning to lean on a thin savings cushion:

• Median renter's liquid assets, investments, and IRA balances combined: About $2,891 ($2,605 in liquid assets alone).

• Renters who currently have enough saved to cover the $23,400 national median down payment outright: Just 15% to 20%.

Most buyers who close that gap do it with assistance programs or low-down-payment loans.

Yes, and more buyers are doing exactly that.

• FHA loans: Allow down payments as low as 3.5% for qualifying borrowers. They've accounted for more than 24% of purchase mortgages for five straight quarters, the longest sustained stretch since 2016.

• VA loans: Can require no down payment at all for eligible veterans and service members. They hit an 11.7% share in early 2026, their highest in more than a decade.

Together, FHA and VA loans now make up more than a third of all purchase mortgages.

That shift reflects a market where buyers without deep cash reserves are finding real paths to homeownership through government-backed and zero-down loan programs, instead of getting priced out entirely. Eligibility, mortgage insurance costs, and loan limits vary by program and by county, so it's worth reading up before you apply.

Conventional loans have loosened up, too. Many lenders now offer conventional mortgages with as little as 3% down for qualifying first-time buyers. Private mortgage insurance (PMI) typically applies until you reach 20% equity, and your exact terms will depend on your credit score, debt-to-income ratio, and lender.

Down payment assistance isn't a niche resource anymore. A record 2,624 homebuyer assistance programs were active nationwide as of Q3 2025, according to Down Payment Resource's Homeownership Program Index, with an average benefit of roughly $18,000 per buyer.

State and local housing finance agencies, city governments, and nonprofits typically run these programs. Most structure their help as one of a few formats:

• Grants: Don't need to be repaid, often reserved for first-time or lower-income buyers.

• Forgivable second loans: Wiped out after the buyer stays in the home for a set number of years.

• Low-interest second loans: Repaid monthly alongside your main mortgage, often at reduced or even 0% interest.

• Deferred-payment loans: Come due only when the home is sold, refinanced, or paid off.

Many programs cap the purchase price near the local conforming loan limit and require a homebuyer education course, typically cheap or free, and just a few hours long.

Because these programs are run locally, your best move is checking what's available in your city and state. Assistance doesn't replace your mortgage, it's paired with an FHA, VA, or low-down conventional loan to cover the cash you'd otherwise need at closing.

The average age of first-time homebuyers hit an all-time high of 40, but you don't have to wait that long if you're still in your 20s and 30s.

Expert Take: Prioritize buying a home sooner rather than later by choosing a smaller home that needs a little to a lot of work. You'll have a lower down payment, a more affordable mortgage, and a chance to build equity through market appreciation and principal payments. Later, you can use the equity to buy a home you like more.

9 Practical Ways to Save for Your Down Payment

In addition to assistance programs, here's what actually moves the needle:

1. Automate transfers into a dedicated high-yield savings account.

2. Time your purchase around a lower-cost region if relocation is on the table.

3. Ask a lender upfront about gift-fund rules if family is contributing. Most conventional and FHA loans allow gifted funds to cover part or all of a down payment, under specific documentation rules.

4. Send windfalls straight into a savings fund, such as tax refunds, bonuses, or raises.

5. Buy a more modest first home, like a condo or starter property, which means a smaller down payment.

6. Layer your savings with other help, such as the assistance programs and low-down-payment loans covered above.

7. Tap an IRA if you qualify. First-time buyers can withdraw up to $10,000 penalty-free, though income tax may still apply.

8. Open a first-time homebuyer savings account if your state offers one. Several states, including Iowa, Oregon, and Colorado, offer tax benefits on money saved for a first home.

9. Pay down high-interest debt, which frees up cash and lowers your debt-to-income ratio.

From My Experience: When my husband and I bought our first home in 2016, we used a combination of gift funds and personal savings for the down payment. I used automatic transfers to move money from our checking account at one bank to our earmarked savings account at Capital One 360.

A Capital One 360 Performance Savings account allows you to easily open multiple savings accounts for different goals. I had one to save for the down payment, but I also had a car savings fund and a tithing savings fund.

While I've had my Capital One account for decades, I've used You Need A Budget (YNAB) for the last 8 years to manage my finances, so I no longer use separate savings accounts for my financial goals.

What Happens Once You've Saved Enough?

Once you pull the money together, a lender still has to approve the loan. Your credit profile, individual circumstances, and lender policies all factor into the decision.

• Realtor.com® Down Payment Report, May 2026

• National Association of Realtors, 2025 Profile of Home Buyers and Sellers—press release, November 2025

• Down Payment Resource, Down Payment Assistance Hits Record High in Q3 2025 With 2,624 Programs and Counting

• IRS, Retirement Topics—Exceptions to Tax on Early Distributions

• Iowa Department of Revenue, First-Time Homebuyers Savings Account

• Oregon Department of Revenue, First-Time Home Buyer Savings Accounts

• Colorado Department of Revenue, First-Time Home Buyer Savings Account Interest Deduction

• Michigan State Housing Development Authority, MI 10K DPA Loan