What is the average down payment on a house?

A down payment is a lump sum that you pay upfront when you buy a home. The size of your down payment is reflected as a percentage of the total purchase price. Making a larger down payment reduces the amount you must borrow and can help you save money.

A common misconception is that you have to wait until you’ve saved up to make a 20% down payment. However, most loans are available for a much smaller down payment. Some don’t require a down payment at all. Here, we’ll take a closer look at the average down payment home buyers are making these days.

How much is the average house down payment?

According to data from the National Association of REALTORS® released in November 2024, the median down payment was 9% for first-time home buyers and 23% for repeat home buyers. The 2024 median down payment for all home buyers is 18%.

When it comes to down payment amounts, it can be more helpful to look at medians instead of averages. That way, unusually high down payments made by extra wealthy buyers don’t skew the results and misrepresent what an average buyer can afford.

As the data shows, first-time home buyers typically make a smaller down payment, which is often less than 10%. For many first-time buyers, it can take time to save up enough to make a down payment without relying on the money you make from selling a previous house.

Median down payment by state

The median down payment differs significantly by state because the purchase price of homes varies so much based on where you’re buying. According to 2024 data from NAR, the state with the highest median down payments was Hawaii, and the state with the lowest median down payments was Mississippi.

The states with the highest median down payment were:

• Hawaii: $93,928
• California: $93,633
• District of Columbia: $93,559
• Washington: $85,362
• New Jersey: $80,105
• Massachusetts: $76,969

The states with the lowest median down payment were:

• Mississippi: $6,191
• Louisiana: $6,582
• West Virginia: $7,412
• Alabama: $8,207
• Arkansas: $12,532

What to consider when making a down payment on a house

The down payment you end up making may not have anything to do with the average down payment on a house. Other factors that influence how much you put down include:

• The amount you have in savings
• The price of the home
• The minimum down payment for your loan type
• Your total debts
• The condition of your home and how much you’ll need to spend on repairs
• Whether or not you want to pay for mortgage insurance
• Your lender’s down payment requirements
• If you want an existing or newly constructed home.
• The current state of the housing market
• How close you are to retirement

When it comes to gathering the money for a down payment, NAR data found that:

• 69% of first-time home buyers used their own personal savings
• 25% used gifts or loans from family and friends
• 21% used financial assets, like investment accounts
• 7% used inheritances

If you can’t afford your down payment, you may qualify for down payment assistance. Down payment assistance programs are offered by many states, local governments, and non-profit organizations to help low- and moderate-income first-time home buyers cover the upfront costs. You can use this tool to explore down payment assistance programs that are offered in your area.

How much should you put down on a house?

Minimum down payment requirements vary depending on the type of loan you choose. Here are the major loan programs and the down payment requirement for each.

Conventional loan

Conventional loans are the most common mortgage option and are not backed by any government program. The minimum down payment for a conventional mortgage loan is 3% of the purchase price if you’re a first-time home buyer, though many lenders will require a down payment of at least 5%. Conventional loans can be cheaper than FHA loans but come with stricter credit requirements. You’ll typically need a credit score of at least 620 to qualify for a conventional loan.

If you get a conventional loan and make a down payment that’s less than 20%, you’ll need to purchase private mortgage insurance. PMI can be avoided if your down payment is at least 20%.

FHA loan

A Federal Housing Administration (FHA) loan is a government-backed loan with looser requirements than a conventional loan. You can get loan approved by some lenders with a credit score as low as 500, but you’ll need a credit score of 580 or higher to put down only 3.5% at closing. With a credit score in the 500 - 579 range, you’ll need a down payment of 10%. For borrowers with lower credit scores and a smaller down payment, FHA loans can be cheaper than conventional loans.

VA loan

A (VA) loan is a government-backed loan that’s offered through the U.S. Department of Veterans Affairs to eligible current and former members of the Armed Forces and the National Guard, along with surviving spouses who meet certain eligibility criteria. You can buy a home with no money down if you qualify for a VA loan.

USDA loan

A (USDA) loan is a government-backed loan offered through the U.S. Department of Agriculture to low- and moderate-income borrowers in certain areas. Like a VA loan, a USDA loan allows you to purchase a house with no money down.

Rocket Mortgage® does not offer USDA loans at this time.

Down payment amount by purchase price: At a glance

Because down payments are reflected as a percentage of the home price, it may not always be immediately obvious how much money you’ll need. Here’s a look at what a 3%, 10%, and 20% down payment would look like for different homes based on purchase price.

Is it better to put a large down payment on a house?

Making a larger down payment can help you save money because it can help you score a lower interest rate. If you get a conventional loan and your down payment is at least 20%, you can save even more by avoiding PMI.

That said, it can take a long time for first-time buyers to save up any down payment, let alone a big one. Waiting until you can make a larger down payment can delay your home buying goals and cost you in other ways. For example, you could end up paying more in rent than you would save by eliminating PMI and reducing the amount of interest you pay. You could also end up missing an opportunity to build equity in a home that you purchase. You can use our rent vs. buy calculator to illustrate how much your down payment can impact whether it’s a good time for you to rent or buy.

Getting preapproved for a mortgage will tell you how much a lender is willing to lend you and how much house you can afford. This can help you determine how much of a down payment you can make.

Do you need 20% for a down payment on a house?

No. The myth of the 20% down payment requirement comes from the PMI requirement on conventional loans. PMI is a type of mortgage insurance that lenders require for their protection if a borrower ends up defaulting on their home loan.

While you’ll need to pay PMI if you have a lower down payment than 20%, you can request to cancel your PMI once you reach 20% equity.

Pros of a 20% down payment

Avoiding PMI isn’t the only benefit of putting 20% down on your loan. Other advantages include:

• A lower interest rate
• A smaller loan amount
• Lower monthly mortgage payments
• Less interest paid over the life of the loan

You can save thousands of dollars over time by reducing the amount of money you borrow and the interest you pay on the mortgage loan.

Cons of a 20% down payment

Making a 20% down payment on a house can also come with a few downsides, which may include:

• Needing more time to save for a down payment
• Having less money to pay for potential home repairs, new furniture, and other necessities
• Depleting your savings or emergency fund

Consider your loan’s requirements along with your financial situation and individual preferences when determining how much you need for a house down payment.

The bottom line: The amount you put down depends on your situation

These days, the typical down payment for first-time home buyers in the U.S. is about 9% of the purchase price. However, you can get a conventional loan for as little as 3% down and an FHA loan for at least 3.5%. Buying a home with as little as zero down is possible if you’re eligible for a VA or USDA loan.

The down payment that’s right for you will depend on your individual circumstances and needs. When you’re ready to begin the home-buying process, start your application online with Rocket Mortgage®. We’ll help you understand the true cost of your mortgage and identify your most suitable loan options.