Down Payments Are Smaller Than They’ve Been Since 2021

Belated Happy 4th of July from Team Linda Carter! We hope you had a wonderful holiday filled with family, friends, and time at home. As we move into July, let’s talk about something many buyers are thinking about right now: down payments.

Saving for a down payment can feel like one of the biggest hurdles to buying a home, especially with affordability still tight. But here’s some encouraging news: buyers are putting less money down than they have in years.

According to Realtor.com, the typical buyer put down about $23,400 in early 2026. That is around $5,000 less than the year before, a 19% drop year over year, and the lowest level since 2021.

Why Down Payments Are Getting Smaller

There are a few reasons behind this shift.

First, there is less competition between buyers. In many markets, buyers have more room to compare homes, negotiate, and make thoughtful decisions. That means there may be less pressure to put a large amount down just to stand out.

Second, home price growth has moderated. Since down payments are usually based on a percentage of the purchase price, slower price growth can help lower the amount needed upfront.

Third, more buyers are using lower down payment loan options. FHA and VA loans continue to help qualified buyers purchase with less money down. VA loans may even allow eligible buyers to purchase with no down payment.

Help You May Not Know You Qualify For

Down payment assistance is one of the most overlooked tools available to buyers. Research from Urban Institute and Down Payment Resource found that nearly 44% of recent buyers in the 10 largest U.S. metros qualified for a down payment assistance program, but many did not use one.

There are more than 2,600 down payment assistance programs available. While many are designed for first-time buyers, some do not require you to be a first-time buyer at all. Some programs are also open to buyers earning $100,000 or more.

A Boost from Loved Ones

For some buyers, help also comes from family. 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 often goes toward the down payment, closing costs, or helping the buyer qualify for a mortgage. If loved ones are in a position to help, it can make a meaningful difference, but it is important to speak with a trusted lender first so everything is handled correctly.

Bottom Line

Down payments are smaller than they have been in years, and that may open the door for more buyers.

If you have been waiting because you thought you needed a large down payment, it may be time to take a fresh look at your options. Between lower down payment loan programs, assistance options, and possible help from loved ones, you may be closer to buying than you think.

If buying a home is on your mind this year, Team Linda Carter is here to help you understand your options and take the next step with confidence.