Average Down Payment On A House In 2024

Many home buyers are curious about how much money they should have for a down payment on a house. Down payment amounts vary by loan program, age group and state.

Here, we look at the average down payment for a house across the U.S. and how to afford a home loan.

What Is the Average Down Payment on a House?

The nationwide average down payment for a house is 14.4%—an average median of $34,248—during the second quarter of 2023, reports Hannah Jones, an economic data analyst at Realtor.com.

In the second quarter of 2023, Louisiana home buyers made the lowest average down payment of 9.2% at $6,729, while Washington, D.C. has the highest down payment percentage amount at 20.4%, with a $100,800 median down payment due to the area’s expensive housing market.

Average Down Payment Trends for 2024

Home buyers are posting smaller down payments in most housing markets since home prices peaked in the fourth quarter of 2022 and are decreasing through 2023 year-to-date.

For instance, the average median down payment was $34,248 in Q2 2023, down 3.3% year-over-year from $35,410. The median sales price decreased by 7.4% from $449,300 to $416,100 over a similar period.

However, several of the most affordable state-level and local markets have seen an increase in median down payments as a percentage of the sales price. Conversely, some of the priciest markets see declining down payment amounts as the crunch in home affordability continues.

Generally speaking, northeastern and midwest states such as Wyoming and Connecticut have witnessed the highest year-over-year increases, according to Realtor.com’s report. Western states like Idaho and Arizona are experiencing the sharpest declines due to the rapid price run-up from 2020 to 2023.

Two potential reasons for the higher median deposit are that buyers have more purchasing power and also want a lower monthly payment due to higher mortgage rates.

Down Payments for Second Homes Are Higher

The average down payment for a second home or investment property is 27% of the purchase price, according to Realtor.com’s 2023 Down Payment Report. While this housing market sector isn’t as prevalent as primary residences, the higher amount signals that buyers with disposable income can put more money down.

Average Down Payment for First-Time Home Buyers

The National Association of Realtors (NAR) states that the average down payment on a house for first-time home buyers is 6% versus 17% for repeat buyers in 2022. However, the share of first-time buyers fell to 22% in 2022, dropping from 34% in 2021.

Average Down Payment Statistics

The average down payment for a house differs widely by state due to different home prices. Additionally, the age of home buyers also plays a factor, as older buyers tend to have more money.

Average Down Payment by State

State	Median Down Payment	Average Down Payment Percentage
Alabama	$7,198	10.10%
Alaska	$18,162	11.00%
Arizona	$30,703	14.50%
Arkansas	$11,603	11.90%
California	$85,179	18.20%
Colorado	$66,062	17.20%
Connecticut	$43,033	15.80%
Delaware	$36,052	15.60%
Florida	$33,411	15.20%
Georgia	$15,266	11.50%
Hawaii	$44,440	13.10%
Idaho	$61,067	19.90%
Illinois	$27,963	14.00%
Indiana	$16,430	12.20%
Iowa	$27,395	15.50%
Kansas	$15,353	11.90%
Kentucky	$15,337	12.20%
Louisiana	$6,729	9.20%
Maine	$28,850	13.10%
Maryland	$25,368	11.90%
Massachusetts	$86,592	19.00%
Michigan	$20,637	13.40%
Minnesota	$37,685	15.50%
Mississippi	$6,064	9.60%
Missouri	$15,260	12.20%
Montana	$72,290	20.40%
Nebraska	$21,375	14.00%
Nevada	$32,295	14.30%
New Hampshire	$61,449	18.30%
New Jersey	$64,671	17.50%
New Mexico	$19,624	13.20%
New York	$49,150	16.60%
North Carolina	$27,667	13.90%
North Dakota	$21,536	13.10%
Ohio	$14,588	11.60%
Oklahoma	$13,478	11.50%
Oregon	$52,250	16.90%
Pennsylvania	$22,679	13.10%
Rhode Island	$47,467	16.10%
South Carolina	$21,092	14.20%
South Dakota	$34,166	15.20%
Tennessee	$23,151	14.00%
Texas	$20,188	12.10%
Utah	$39,782	15.50%
Vermont	$43,600	17.40%
Virginia	$29,088	13.00%
Washington, D.C.	$100,800	20.40%
Washington	$69,389	17.00%
West Virginia	$6,853	9.60%
Wisconsin	$28,846	14.60%
Wyoming	$26,900	15.40%

Source: Realtor.com

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Average Down Payment by Age

NAR reports that 78% of all home buyers financed their home acquisition, with buyers between ages 24 to 32 being the most likely to get a mortgage. Approximately 94% of this age group obtained financing while having a median down payment of 8%.

Here is a breakdown by age group, with older home buyers having more capital to put down.

Age	Median Percent Down Payment
24 to 32	8%
33 to 42	11%
43 to 57	10%
58 to 67	20%
68 to 76	21%
All buyers	14%

Source: 2023 NAR Home Buyers and Sellers Generational Trends

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How To Save for Down Payment

Saving for a down payment can be overwhelming since it’s a considerable cost. Here are several tips and tricks to find the funds you need to buy a house.

Know Your Down Payment Amount

A down payment calculator estimates upfront costs and your monthly payment amount. The amount can be less if you buy a cheaper home or qualify for a lower mortgage rate, keeping your monthly loan payment lower.

Aspiring buyers typically ask, “Is it best to put 20% down on a house?” This is a laudable goal as a minimum 20% down payment waives private mortgage insurance (PMI) on conventional loans. However, eligible borrowers can put down as little as 3% but pay additional fees.

Compare Types of Mortgages

Down payment requirements differ by loan program. Comparing your mortgage options to lenders with no or low down payments can help you find the most affordable choice.

For example, you can be eligible for a conventional loan with as little as 3% down. However, a 20% down payment is needed to avoid PMI premiums. Government-backed programs such as FHA loans, VA loans or USDA loans can require 0% to 10% but are more likely to charge upfront and annual fees.

If you’re living in a high-cost metro area, you may need a jumbo loan to afford a home. The down payment requirements for jumbo loans vary by lender and range from 10% to 30%, with 20% being the most common threshold.

Reduce Your Debt-to-Income Ratio

You can be eligible for more loan programs and competitive rates with a low debt-to-income (DTI) ratio. Lenders use your DTI to estimate how much you can afford for a monthly payment and may require a larger down payment to have a suitable ratio.

Several ways to lower your DTI include:

• Increase your income
• Pay off existing debt
• Purchase a cheaper home

Many lenders recommend a DTI below 43%, but some programs allow a maximum of 50%. Additionally, having a good credit score of 670 or above helps you qualify for lower rates and fees, as lenders perceive less risk.

Automate Your Savings

Automating your savings can help you reach your down payment goal sooner as you avoid overspending. For instance, you may start by transferring a portion of each paycheck into a savings account.

Another option is reducing your monthly expenses and saving the difference. You can combine several strategies to boost your cash reserves.

Consider Gift Funds

Family members, such as a parent, sibling or in-laws, can contribute financial gifts to cover all or part of the down payment. The mortgage gift rules vary by lender and program and you may need to use a certain amount of personal funds.

According to NAR, approximately 7% of buyers received gift funds for home purchases in 2022. Buyers ages 24 to 32 make up 19% of those that are most likely to use a mortgage gift for purchase, and 12% are ages 33 to 42.

Down Payment Assistance Options

Saving up for a traditional 20% down payment is time-consuming and challenging for home buyers with limited finances. Several down payment and closing cost assistance programs help borrowers satisfy the upfront financial requirements.

First-Time Home Buyer Loans

Many lenders offer first-time home buyer programs. These are conventional loans with low down payments or grant assistance programs.

The most common conventional first-time buyer programs are:

• Conventional 97. This loan only requires a 3% down payment and a credit score of 620 or higher. This standard 97% loan-to-value mortgage doesn’t have income limits.
• Fannie Mae HomeReady. For home buyers with a limited income and a minimum 620 credit score. The down payment is as low as 3% of the loan amount.
• Freddie Mac Home Possible. Applicants with a low or moderate income and a minimum 660 credit score can be eligible for a 3% down payment.
• Freddie Mac HomeOne. This program doesn’t have income or geographic restrictions, but at least one applicant must be a first-time home buyer who can make a 3% down payment.

Participating national banks and credit unions may also offer first-time home buyer grants. Depending on the program, you can use the funds for various purposes, such as covering your down payment, closing costs or necessary improvements and repairs.

Government-Backed Loans

First-time and repeat buyers may consider government-backed home loans with little or no down payment. Each loan has different borrower and down payment requirements.

• FHA loans. FHA lenders accept 3.5% down with a credit score of 580 or above and at least 10% for credit scores from 500 to 579. All loans require mortgage insurance, but it ends after the first 11 years when you make a minimum 10% down payment.
• VA loans. A VA purchase loan doesn’t require a down payment if the sales price doesn’t exceed the home’s appraisal value. However, consider making a down payment of at least 10% to pay the lowest VA funding fee.
• USDA loans. No down payment requirements exist for USDA loans, although geographic and income restrictions apply.

Consider a VA or USDA-backed mortgage, if you’re eligible, since you won’t need a down payment.

FHA-insured loans require a down payment of some kind, although you can apply grants and down payment assistance benefits to offset this cost. Some qualifying mortgage programs include an FHA 203(b) purchase loan and the FHA 203(k) rehab loan.

State and Local Assistance Programs

There are many home buyer assistance programs available through state and local governments. Participating charities also offer financial aid  to eligible home buyers.

Down payment assistance arrives in several forms, including:

• Grants. Proceeds can apply towards the down payment or closing costs and usually don’t require repayment.
• Matched savings program. An individual development account (IDA) or matched savings program allows agencies to match the savings of income-eligible households. For example, $1 in savings equals a $5 matching contribution.
• Second mortgage. Organizations may offer assistance through a no-interest second mortgage loan. Depending on the program, the loan balance can be forgiven by living in the house for a certain number of years.

The best mortgage lenders will work with you to see which assistance programs you’re eligible for. You can also visit your state and local government housing agency departments for details.