What is the average down payment on a house in 2024?

While there are plenty of hurdles to homeownership, saving for a down payment often tops the list. However, you may be able to put down less depending on the mortgage program you choose and the purchase price of your new home. Here’s what to know about the average down payment, the requirements for each major program, and how to save for this expense. 

What is the average down payment on a house?

The average down payment on a home in the U.S. was 13.6% in the first quarter of 2024, according to Realtor.com. That amounts to $57,230 if you apply it to the median home sale price of $420,800.

While the average down payment is up year over year, it dropped from a peak of 14.7% in the fall of 2023. The rebounding home inventory is likely reducing buyer competition and therefore impacting down payment sizes.

Repeat homebuyers tend to put down more than first-time buyers (19% versus 8%) because they can use their home sale proceeds toward the down payment on their next home. 

What are the minimum down payment requirements? 

The minimum down payment requirements vary with each type of loan. The table below shows the minimum down payment amount required for each mortgage program.

How much should you save for a down payment?

Every mortgage program comes with a different minimum down payment. Some programs allow 0% down payments while others go up to 3.5% or more. 

But paying too much toward your down payment can drain your savings, so consider how much you’re comfortable with paying. 

The table below shows how much you’ll need to save for a down payment based on the price of the home.

Do closing costs affect down payment?

Your closing costs are the fees you pay upfront when signing the loan papers. They’re separate from your down payment and can cost anywhere from 2% to 5% of the purchase price of the home. Generally, the more you must pay toward closing costs, the less funds you’ll have available for the down payment. So you’ll need to consider both expenses when coming up with your budget.

Strategies to save for a down payment 

Saving for a down payment can take anywhere from six months to three years for the typical homebuyer, according to the National Association of Realtors (NAR). Here are some strategies you can use while working toward this goal.

• Set a savings goal. Figure out how much you need for your down payment based on your home price budget. For instance, if you want to put down 5% on a $400,000 home, then you’ll want to save $20,000.
• Determine your timeline. Figure out when you can reach your goal based on how much you can save. If you can put aside $1,500 per month, for example, then you’ll reach your $20,000 goal in a little more than 13 months. 
• Put your funds in a savings account. When you open a high-yield savings account, you can deposit money continually while earning a strong annual percentage yield (APY). This feature can help your down payment funds grow as you save.
• Boost your savings. There are plenty of ways to bring in extra money and speed up your savings timeline. For instance, you may decide to take up a side job, monetize a hobby, and stash away any windfalls, like bonuses from work. 
• Reduce your expenses. While you’re saving for a house, cut back on your spending where possible. You could, for example, cancel subscription services, negotiate better rates on your recurring expenses, and pay down debt to free up your funds.
• Check out assistance programs. Down payment assistance programs provide grants and low-cost loans to help people afford the upfront costs of homebuying. Each program has different eligibility requirements that are usually based on income and location. Start your search with nonprofits and housing authorities in your area.
• Ask for a gift. Many loan programs allow borrowers to use gift funds, which is money from a family member or friend. You may need to follow guidelines, such as the maximum gift amount, and submit a document to your lender that states the money isn’t a loan.

Average down payment on a house FAQ 

How much down payment for a $300,000 house?

Depending on which mortgage program you go with, your minimum down payment on a $300,000 house could range from $0 to $60,000. You may put down more based on your available savings and the monthly payment you can afford.

Is $20,000 enough for a down payment?

A $20,000 down payment could be enough depending on the home price and the mortgage program. The $20,000 would be more than enough for a 3.5% down payment on a $500,000 home, for example. 

What's normal for a down payment?

As of early 2024, the typical down payment is 13.6%. First-time homebuyers typically put down a lower amount, around 8%, while repeat buyers usually put down more, around 19%. 

Are 20% down payments best?

The best down payment for you is one that allows you to buy a home without draining your resources. A 20% down payment is higher than the average down payment in early 2024. This down payment size helps you save on interest costs, lowers your monthly payment, and allows you to skip PMI on a conventional mortgage. But you may decide to put down less 

Can I buy a $300k house on a $70k salary?

It might be possible to buy a $300,000 home with a $70,000 salary, though a home priced around $285,000 or less would be more affordable to you. Home affordability depends on your down payment, interest rate, and the costs of insurance premiums  and property taxes.

To figure out how much to spend on a home, some people use the 28/36 rule of thumb. This guideline recommends spending no more than 28% of your gross income on your housing payment and up to 36% of your income on all your debts combined (including the mortgage). 

If you bring home $5,833 per month before taxes, then you could spend $1,633 a month on your mortgage loan. If you have no other debts, you may be able to comfortably afford $2,100 per month. With a mortgage rate of 6.875%, a 20% down payment and a 30-year term, a $300,000 home would cost $1,577 per month, plus the cost of property taxes and homeowners insurance.