According to Google Trends, online searches for down payment information recently hit an all-time high. And that’s a clear sign more buyers are trying to figure out what they really need to save before making a move (see graph below):

If you’re wondering the same thing, you can always turn to the internet for answers. But a lot of the time, it’s better to ask a local expert. Because here’s what a pro would tell you.

The 20% Down Payment Myth

The idea that you need 20% down to buy a home is one of the biggest misconceptions around the homebuying process. And the data debunks the myth.

While there are benefits to putting that much money down, most first-time buyers put down far less.

Here’s why. Unless it’s stated by your lender, you typically don’t have to have a 20% down payment. There are even some loan options designed to help you get into a home with a much smaller upfront cost. As the Mortgage Reports explains:

“The amount you need to put down will depend on a variety of factors, including the loan type and your financial goals. If you don’t have a large down payment saved up, don’t worry—there are plenty of options available, and you don’t need to put down the traditional 20% . . . many homebuyers are able to secure a home with as little as 3% or even no down payment at all . . .”

For example, FHA loans allow down payments as low as 3.5%, while VA and USDA loans offer zero down payment options for qualified applicants, like Veterans.

And those options are just one reason so many first-time buyers are able to buy without a 20% down payment.

What Buyers Are Actually Putting Down

So, if buyers aren’t doing 20%, how much do they actually put down?

According to the National Association of Realtors (NAR), the median down payment for first-time homebuyers is only 10%. That’s half of what you probably expected.

That means if you’re aiming to save 20% because you think you have to, you may be setting a timeline that’s longer than necessary.  

And here’s some more good news. It’s not only that you may be able to buy with less money down than you thought, but there are also options to help you get to your down payment goal even faster.

Why You Should Look into Down Payment Assistance Programs

There are a lot of programs designed to help you save for a down payment – and they can make a big difference in how fast you hit your savings target. Unfortunately, buyers don’t realize how many there are, or that they may qualify for help.

Research from Realtor.com shows almost 80% of first-time homebuyers qualify for down payment assistance (DPA), but only 13% actually use it (see chart below): 

And that’s another big miss holding would-be buyers like you back.

In the U.S., there are over 2,600 homeownership programs available, many offering significant financial support. As Down Payment Resource shares:

“With an average benefit of $18,000, down payment assistance (DPA) remains one of the most essential tools for addressing the nation’s affordability challenges. Programs continue to expand in scope, serving a broader range of incomes, property types and borrower needs, including first-generation, military and repeat buyers.”

Imagine how much further your savings could go with an extra $18,000 you can use to buy. In some cases, you may even be able to stack multiple programs, giving what you’ve saved an even bigger boost.

Bottom Line for First-Time Homebuyers

The simple truth is: most first-time buyers don’t put 20% down. And if you’ve been waiting to buy until you have that saved, you may be setting a timeline that’s longer than necessary.

Whether you’re just starting your search for a home for sale in North San Diego County, exploring Carlsbad homes for sale or Vista homes for sale, or browsing current listings, understanding your real options can help you move forward with confidence.

To find out what you really need to save and if you qualify for any help, connect with a trusted lender who can walk you through your options. You may be able to buy sooner than you thought.

As a local Escondido real estate agent specializing in North San Diego County real estate, I can also help you understand what your homebuying budget could look like in today’s market—and guide you through every step of the process.

👉 Start here:

• Find out what your home is worth
• Browse homes for sale
• View the latest market snapshot
• Estimate your monthly payment with a mortgage calculator
• Contact us to get started

First-Time Homebuyer Down Payment FAQs

Do first-time homebuyers need a 20% down payment?

No, most first-time homebuyers do not need to put 20% down. While putting 20% down on a conventional loan typically helps you avoid private mortgage insurance (PMI), requirements vary by loan program. Many loan programs allow for much lower down payments—in some cases, as low as 3%–3.5% or even 0%, depending on the program and borrower qualifications. It’s best to speak with a trusted local lender to understand your specific options and minimum requirements.

What is the average down payment for first-time homebuyers?

According to data from the National Association of Realtors (NAR), the typical first-time homebuyer puts down around 10% of the purchase price. However, the amount can vary based on financial goals, loan programs, and individual circumstances, and some buyers put down less while others choose to put down more.

Are there programs that help with down payments?

Yes, there are many down payment assistance (DPA) programs available that can help eligible buyers cover part of their upfront costs. These programs and benefits vary by location, income limits, and other qualification requirements, so it’s important to work with a knowledgeable lender or local real estate professional to explore what’s available in your area.

Disclaimer: This information is for general educational purposes only and should not be considered financial, tax, or lending advice. Loan programs, down payment assistance, and eligibility guidelines change frequently and can vary by lender and location. Buyers should verify all information directly with a licensed lender and appropriate professionals before making any decisions.