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Transformation Advisory, LLC
DFWREAdvisors Group Blog

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Wondering How Much You Need To Save for a Down Payment?


If you are getting ready to buy your first home, you are likely focused on saving up for everything that purchase involves. One cost that is likely top of mind is your down payment. But don't let a common misconception about how much you need to save make the process harder than it could be.


Understand 20% Is Not Always the Typical Down Payment!

Freddie Mac explains:

“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.”

Unless specified by your loan type or lender, it is typically not required to put 20% down.

This means you could be closer to your homebuying dream than you realize. According to the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. In fact, the median down payment today is only 14%. And it is even lower for first-time homebuyers at just 6% (see graph below):


Learn About Options That Can Help You Toward Your Goal

If saving for a down payment still feels like a challenge, know that there is help available.

A real estate professional and trusted lender can show you options that could help you get closer to your down payment goal. According to latest Homeownership Program Index from Down Payment Resource, there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments.

Plus there are even loan types, like FHA loans, with down payments as low as 3.5%, as well as options like VA loans and USDA loans with no down payment requirements for qualified applicants.

To understand your options, be sure to do your homework. If you are interested in learning more about down payment assistance programs, information is available through sites like Down Payment Resource.


Then, partner with a trusted lender to learn what you qualify for on your homebuying journey. If you need a referral, we can provide them.

Bottom Line

Remember, a 20% down payment is not always required. If you want to purchase a home this year, let’s connect. You will also want to make sure you have a trusted lender so you can explore your down payment options.



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