What Is the Average Down Payment on a House?

By PropertyClub Team
Jun 14th 2022
The down payment for a house is the money that must be paid upfront as part of the purchase price. The average down payment on a house will typically range from 5% to 20%, depending on the lender and other criteria. This amount varies, often depending on the type of loan you're getting, but it is always at least one percent of the purchase price.

The average down payment for a house in the United States varies by state. According to a National Association of Realtors (NAR) report on house purchase patterns in the United States for 2022, the median down payment for all buyers was 12 percent. That means that on a $300,000 home the downpayment would be $36,000. 

hash-markTable of Contents

Mortgage Down Payment Requirements Based on Loan Programs
Average Down Payment on a Home by State
Is a Larger Down Payment Worthwhile?
Final Words on Average Down Payments

hash-markMortgage Down Payment Requirements Based on Loan Programs

The minimum down payment requirement varies by lending programs. The following are some of the most popular mortgage programs, along with their respective minimum down payment requirements.

1. Loans from the USDA

USDA loans are mortgages backed by the United States Department of Agriculture. This type of financing necessitates no down payment. To qualify for a USDA loan, however, the home you want to buy must be in a rural or suburban area. Furthermore, there are income requirements that members of your household must achieve in order to qualify for a mortgage down payment reduction.

2. V.A. Loans

You do not have to make the customary down payment if you qualify for this sort of loan. However, your eligibility is contingent on a number of factors, including your duration of service in the military and the reason for your dismissal. This loan is intended for the spouses of active military personnel or veterans who died in a service-related accident.

3. Loans from the FHA

These, like VA loans, are backed by the government. This loan program, guaranteed by the Federal Housing Administration, determines a borrower's minimum down payment for a house based on their financial and credit qualifications. Typically, the FHA minimum down payment is 3.5 percent of the home's worth, and you must have a minimum credit score of 580 to qualify.

4. Conventional Loans 

In recent years, the eligibility conditions for a conventional loan have become heavily reliant on your credit score and financial situation. If your credit score is higher than 620, you may be able to lower your payment. Keep in mind that, while certain conventional loan lenders may want you to put down 6%, the minimum down payment for a conventional loan is 3%. The higher your credit score, the greater your chances of obtaining a favorable loan term.

hash-markAverage Down Payment on a Home by State

State

Average Down Payment 

Rhode Island 

$65,817 

District of Columbia 

$63,537 

Hawaii

$51,499

Kentucky

$44,250

Maryland

$43,500

Alaska

$36,738

Delaware

$36,500

New York

$34,998

Tennessee

$34,975

California

$34,500

Arizona

$34,488

Oklahoma

$33,525

Indiana

$32,900

Pennsylvania

$32,136

Massachusetts

$30,025

Kansas

$30,004

Minnesota

$29,999

New Jersey

$29,500

Missouri

$28,963

North Dakota

$28,900

New Hampshire

$28,760

Colorado

$28,750

Ohio

$28,750

Washington

$28,600

Oregon

$28,001

Texas

$27,500

Florida

$27,450

Idaho

$26,195

Maine

$26,150

Michigan

$26,088

Connecticut

$24,500

Alabama

$24,225

North Carolina

$24,000

Georgia

$23,750

Nevada

$23,670

Iowa

$23,600

Louisiana

$23,575

Virginia

$23,125

South Carolina

$23,064

Utah

$23,050

Wisconsin

$21,930

Arkansas

$20,525

South Dakota

$20,502

Illinois

$20,500

Nebraska

$20,390

New Mexico

$20,250

Mississippi

$18,375

Wyoming

$17,500

Montana

$15,525

West Virginia

$13,297

Vermont

$11,538

hash-markIs a Larger Down Payment Worthwhile?

While it is possible to afford the minimum down payment, making a larger down payment has numerous advantages. Here are a few reasons why you might consider putting down a larger deposit on your future property.

  • You may not be required to pay for mortgage insurance: If you put down 20% or more on a property with a conventional loan, you won't have to pay for private mortgage insurance (PMI), which protects the lender's interest in the loan if you stop making payments. FHA loans, on the other hand, require an upfront mortgage insurance cost regardless of the amount of your down payment.
  • Your loan terms may be more favorable: Lenders typically look at the loan-to-value (LTV) ratio, or what proportion of the home's purchase price would be paid by the loan, when choosing whether to grant a mortgage. Lenders frequently offer better loan terms (interest rate) to borrowers with an LTV ratio of no more than 80% because they believe them to be less risky.

hash-markAverage House Down Payments Bottom Line

The average down payment in America is approximately 6 -15 percent of the loan value for a typical borrower. However, depending on your loan type and credit score, you may be able to purchase a home with as little as 3% down. 

If you qualify for a USDA loan or a VA loan, you may even be able to buy a home with no money down. Before settling on a certain down payment, evaluate your financial circumstances, the condition of the home, and your previous debts.