Is 20% Still The Standard For Down Payments?

Posted by Kansas City Homes on Wednesday, February 3rd, 2021 at 10:30am.

The Average Down Payment For All Homeowners is 12%

First Time Hombuyer | Kansas City Homes

One of the most common misconceptions about buying a home is the amount you need to pay for a down payment. The common value we hear is that you need to have a 20% down payment or you will not be able to buy a home. Will not having a 20% down payment make or break my home purchase? Absolutely not. 

While having a significant down payment can help save you money in the long run, it is far from required in today’s marketplace. First-time homeowners average a 7% down payment when they buy their home. All homebuyers average 12% and repeat homebuyers average 16%.

For many potential homebuyers, the down payment is an area where a majority of uncertainty is centered. More often than not, it is the largest reservation most people have to buying their first home. There are many loan options out there like FHA and VA loans that can assist you with your down payment and reduce the amount you have to pay. 

Better Homes and Gardens Real Estate Kansas City Homes

Data from the National Association of REALTORS®

 

From National Association of REALTORS®:

First-time buyers who financed their home typically financed 93% of their home compared to repeat buyers at 84%.

Don’t handcuff yourself with real estate myths that keep you from accomplishing your goals and dreams. Send us a message or reach out to one of our professionals today to sort out the facts from fiction. 

Better Homes and Gardens Real Estate Kansas City Homes

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