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You are here: Home / Blog / Tips for Home Buyers

Do you have enough money saved for a down payment?

October 17, 2020

Do you have enough money saved for a down payment?

One of the biggest misconceptions for home buyers is how much you’ll need to save for a down payment. Contrary to popular belief, you don’t always have to put 20 percent down to buy a house.

A recent survey by Point2Homes notes that 88 percent of buyers say “they have significantly less savings than the average national down payment amount, which is $62,600.”

Thankfully, neither 20 percent, nor $62,600., is not the amount every buyer needs for a down payment. There are many different options available. That amount can also be significantly less, depending on the purchase price of the house.

According to the National Association of Realtors (NAR), “The median existing-home price for all housing types in August was $310,600.” (These are the latest numbers available). NAR also indicates that:

“In 2019, the median down payment was 12 percent for all buyers, six percent for first-time buyers, and 16 percent for repeat buyers.” (See graph below):

2019 Median Percent Down Payment by U.S. Home Buyers:

2019 Median Percent Down Payment by U.S. Home Buyers

That means if a qualified home buyer purchases a home at today’s median price, $310,600, with a 6% down payment, in reality, the down payment only amounts to $18,636. That’s nowhere near $62,600.

Typically, qualified buyers can obtain a Conventional loan with as little as a 5 percent down payment, and in some cases, as low as 3 percent down. (Although those programs will require mortgage insurance.)

There are also programs like FHA Loans where the down payment can be as low as 3.5 percent, and other programs such as USDA and VA loans that waive down payment requirements.

Unfortunately, the lack of knowledge about the home buying process is keeping many motivated buyers on the sidelines. That’s why it’s important to contact a local real estate professional to understand the requirements in your local area if you want to buy a home. A trusted agent and your lender can guide you through the process.

Bottom Line: Be careful not to let myths about home buying keep you out of the housing market. Let’s connect to discuss your options today.

Filed Under: Tips for Home Buyers Tagged With: Closing Costs, Down Payment

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"My wife and I are now living in a home we saw in person for the first time a few days ago, in fact just an hour before we signed the closing documents. That’s the kind of trust we have in Russ Fortuno. As a buyer’s agent, you could not ask for more. He listened carefully to what my wife and I had in mind and then repeatedly, told us why we wouldn’t be happy with homes we were interested in… until we asked him to take a look at the home we eventually purchased. He went above and beyond what was expected and was always available to answer our questions throughout the process in a very timely manner. I’m not sure I’ve ever experienced service like we received from Russ. I would highly recommend Russ if you are buying a home, especially if you’re not local and you need someone you can count on to look out for your best interests."
- M.H., Green Valley AZ
"As an out-of-state buyer, I needed to find the right person to be my local contact. And Russ was that person. He knows the area and had a lot of patience to show me around. He also did not push his opinion but was willing to give it to me when asked. The end result? With Russ’s help I have purchased the right home in the right area for the right price! I never could have done that without the expertise Russ brings to the process."
- D.H., Mogadore OH
"Very professional approach to all aspects of our transaction. His handling of this purchase allowed us to have total confidence that we were being represented by the best real estate agent for us. I would have no reservations in recommending Russ Fortuno to anyone else looking for a RealEstate Agent! "
- D.L., Green Valley AZ
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Russ Fortuno, Associate Broker

I'm a Southern Arizona native and year-round Green Valley resident. Whether you’re buying or selling a home in the Green Valley or Sahuarita area, you’ll experience unsurpassed service and professionalism at all stages of your real estate transaction. I welcome the opportunity to assist in your next home sale or purchase.
Meet Russ

Tierra Antigua Realty

18745 S. I-19 Frontage Rd., Ste. A105
Green Valley, AZ 85614
(520) 333-0446
Contact Russ

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