When financing a home, many Americans consider a 20% down payment to be the “normal” amount of money to put down in order to qualify for a conventional mortgage loan. And yet, most people don’t put 20% down on a home – not even close.
According to NerdWallet, “The 20% Mortgage Down Payment Is Dead,” especially for first-time homebuyers. For buyers 28 years old and younger who financed their home purchases, the median down payment was just 6%, according to a 2019 survey by the National Association of Realtors® (NAR). The median down payment for all buyers was 13%.
After all, it can be difficult for first-time homebuyers to come up with a “full” 20% mortgage loan down payment. In fact, those who think they need a 20% down payment on a house and believe they can’t save up enough money might stay out of the housing market altogether. And many would-be first-time homebuyers prioritize their student loan debt over saving money to come up with a hefty down payment on a home.