Many potential buyers think that in order to buy a home, you need to have 20% of the purchase price saved to cover a down payment. But in 2021, the majority of buyers are successfully closing on their homes with less.
According to the most recent REALTORS® Confidence Survey, in January 2021, nearly 3/4 of first-time buyers (74 percent) put down less than 20% when buying their home. And it’s not just first-time buyers that are putting down less cash up front; more than half of all buyers (52 percent) successfully purchased a home with a down payment of less than 20 percent.
So, what does that mean for you? In today’s market, the majority of buyers are purchasing homes with less than 20 percent down. If you’ve been holding off on buying a home because you thought you didn’t have enough saved, now could be a great time to reevaluate your finances—and see if buying a home with a lower down payment is the right move for you.