Question 1

What is the average down payment on a house?

Accepted Answer

According to a recent report from the National Association of Realtors, the average down payment for a house or condo in the US in 2021 was 12%, but that average dropped to 10% for homebuyers under 40, and 6% for those under 30. The actual average amount varies wildly depending on where you live. Marketing platform Optimal Blue estimates that as of March 2022, the median down payment in California came to $103,000, while the median down payment in Mississippi was $6,982.

Question 2

When should I start saving for a house?

Accepted Answer

It’s never too late to start saving for your first home – or too early. Even if you’re not sure yet whether homeownership is for you, it never hurts to start setting funds aside as soon as you start considering the option. Worst case, if you end up not opting to buy a home, now you have some extra money on hand – maybe you can go on that trip you’d always dreamed of, or can pad your savings, or both.

Question 3

Can I get assistance with a down payment on a house?

Accepted Answer

It’s certainly possible to receive assistance with your down payment. Some employers offer down payment assistance in their benefits package, so checking with your workplace is a great place to start. You can also look to government and philanthropic institutions: In addition to the U.S. Department of Housing and Urban Development (HUD), many state housing finance authorities, city and county governments, and non-profits offer financial assistance – often in the form of grants, or forgivable zero-interest loans. A number of such programs are geared towards first-time homebuyers and involve income limits, though these aren’t necessarily as low as you might think.

Question 4

Other than the down payment, what expenses should I be prepared for?

Accepted Answer

It’s crucial to remember that the down payment isn’t the only thing to save for when you’re planning to buy a home. There are a number of other expenses that can quickly add up – and moving is stressful enough without being strapped for cash. You’ll want to make sure you have plenty of money set aside not only for the down payment, but for all of the following (and keep in mind that some of these expenses will apply to both your new and current home, as you’ll want to leave it in pristine condition to ensure you receive your deposit):

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