20% for a Down Payment: Myth or Fact?

Many people think that 20% is what is required for a home purchase. That’s not the case, and it is actually considerably lower. In fact, for first time buyers, the average first time purchase puts 6% down. Repeat Buyers, those that have purchased a home previously, put down an average of only 17%, still less than the 20% that has long been considered the ‘norm.’ Combined, the average down payment is only 14%, which is only 70% of what people have always believed.

What does this mean? If you’re looking at homes that are $500,000 - instead of putting down $100,000 (20%), the average is actually only $70,000. That extra $30,000? It can help cover closing costs, moving expenses, new furniture, etc.

Don’t let the 20% myth get in your way if you’re looking to purchase a home.

Let’s talk about what YOU should put down on your next home.

-GZ