Down Payments Are Smaller Than They’ve Been Since 2021

Saving for a down payment can feel like the hardest part of buying a home. And with affordability as tight as it’s been lately, it’s fair to wonder how anyone manages it right now. Here’s something you may not have seen coming.

Some people are getting their foot in the door with a smaller down payment.

According to Realtor.com, the typical buyer put down about $23,400 in early 2026 – that’s around $5,000 below what was typical the year before (a 19% drop year over year). That’s the lowest down payments have been since 2021 (see graph below):

Infographic titled "Down Payments Are the Lowest They've Been Since 2021." A dual-axis line chart tracks the median dollar amount of home down payments (gray dashed line) and the average down payment as a percentage of the purchase price (blue line) from 2013 through early 2026. Both measures generally increased between 2020 and 2024 as home prices rose and buyers made larger down payments. By early 2026, however, both have declined from recent highs. The median down payment has fallen to $23,396, while the average down payment equals 12.8% of the purchase price, the lowest percentage since 2021. The graphic suggests that easing home prices, increased inventory, and expanded financing options are allowing many buyers to purchase homes with smaller down payments than in recent years. Source: Realtor.com.

So why are buyers putting less money down, and how can you put less down, too? Here’s your answer.

Why Down Payments Are Getting Smaller

There are a few things driving the trend:

Less competition between buyers. Part of it comes down to a more balanced market. With buyers facing less competition than they did a few years ago, there’s less pressure to put a big sum down just to stand out.
More moderate home prices. Your down payment is a percentage of the purchase price. So, as price growth cools, the amount you need to put down may change too. In a lot of markets, prices have slowed or leveled off, and some areas are even seeing slight dips. That can translate into smaller down payments.
Buyers opting for loans with lower down payments. More buyers are also turning to government-backed loans, like FHA and VA, which often need little or no money down. FHA loans have made up more than 24% of purchase mortgages for five straight quarters, and VA loans recently hit their highest share in over a decade, according to Mortgage Professional America.

But even a smaller down payment is still a significant chunk of cash, and saving it can be hard. So where does the rest come from? For many buyers, two things make the difference: programs built to help, and a hand from loved ones.

Help You May Not Know You Qualify For

Down payment assistance is one of the most overlooked tools out there. Looking at the 10 largest U.S. metros, Urban Institute and Down Payment Resource found nearly 44% of recent buyers already qualified for a down payment program, but many of them closed on their loan without tapping the help (see chart below):

Infographic titled "Many Buyers Qualify for Down Payment Assistance on Their Conventional Loan, but Few Use It." Two donut charts compare eligibility for down payment assistance with actual program usage. The chart on the left shows that 44% of homebuyers qualify for down payment assistance on a conventional mortgage. The chart on the right shows that only 10% of buyers who qualify actually use these programs. The graphic highlights a significant gap between eligibility and participation, suggesting many buyers may not be aware of available assistance or how to access it. Source: Down Payment Resource.

The options are broader than you might assume, too. According to Down Payment Resource:

There are more than 2,600 down payment assistance programs available
More than half (62%) are designed to help first-time buyers
38% have no first-time buyer requirement, so you may qualify even if you’ve owned before
62% are open to buyers earning $100,000 or more

A Boost from Loved Ones

For a growing number of buyers, help comes from closer to home. Research from Veterans United shows about 59% of parents have provided or plan to provide financial support to help their child buy a home.

That support most often goes toward the down payment, followed by help qualifying for a mortgage and covering closing costs. Chris Birk, VP of Mortgage Insight at Veterans United, puts it this way:

“For many families, helping a child buy a home has become less of an optional gesture and more of a practical response to today’s affordability challenges.”

If your loved ones are in a position to help, it can make a real difference in how soon you can buy.

Bottom Line

Down payments are smaller than they’ve been in years, and that opens the door for more buyers.

And with added help from assistance programs and a little help from loved ones, you may have more ways forward than you realized. Connect with a trusted lender to talk through your options.