Arrange home loan4/5/2024 How much do first-time home buyers have to put down? Yet, keep in mind that if you don’t put 20% down, you’ll have the additional cost of private mortgage insurance (PMI). Thanks to the low-down-payment mortgages available today, many first-time home buyers find the process a lot more affordable than they initially thought. If you have a credit score of 620, you might qualify for a mortgage with just 3% down - or $13,500 out of pocket for a $450,000 home. The average down payment for first-time home buyers is just 6%. On a $450,000 home, that comes out to a $27,000 down payment. In fact, according to data from the National Association of Realtors, the average down payment for first-time home buyers is just 6% (versus 17% for repeat buyers). Many first-time home buyers believe they need 20% down. What’s the average down payment on a house for first-time home buyers? Start hereįor example, if you purchase a new home for $400,000 and borrow $360,000 (90%), you would put $40,000 down on the house. ![]() This contribution is called a “down payment.” It’s the upfront amount you put toward the house out-of-pocket. But most mortgage loans require some contribution from you, the borrower. Sometimes, a bank will lend you the entire amount you need to buy a home. Unless you can buy your new home with cash, you need financing known as a mortgage loan. So if saving for the down payment is a challenge, ask your mortgage lender what help is available. But if you qualify for down payment assistance, you might need even less. For a first-time home buyer down payment, you’d need to save around $13,500 to $15,750 to buy a $450,000 home. So realistically, most first-time home buyers need at least 3% down for a conventional loan or 3.5% for an FHA loan. While certain home loan programs allow 0% down, these have special eligibility requirements. Decem13 min read First-time home buyer down payments start at 3%
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