Down payments in the United States average 11%. However, this figure includes both first-time and repeat buyers.
While the national average down payment is 11%, first-time homebuyers typically put down 3 to 5%. This is due to the fact that several first-time home buyer programs do not require large down payments. The FHA loan, a long-time favorite, requires 3.5% down. Furthermore, some programs accept down payment contributions in the form of a gift from family members.
Some programs call for even less. VA and USDA loans can be obtained with no money down. These programs, however, are more stringent. VA loans are only available to former or current military personnel. USDA loans are only available to buyers with low to middle incomes who live in USDA-eligible rural areas.
Conventional loans required a 20% down payment for many years. These loans were typically used by repeat buyers who could use the equity in their current home as a source of down payment funds. However, if the borrower has private mortgage insurance, some newer conventional loan programs are available with a 3% down payment (PMI).