How Much Do You Need for Your Down Payment?

How Much Do You Need for Your Down Payment?

As you set out on your homebuying journey, you likely have a plan in place, and you’re working on saving for your purchase. But do you know how much you actually need for your down payment?

If you think you have to put 20% down, you may have set your goal based on a common misconception. Freddie Mac says:

“The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.”

Unless specified by your loan type or lender, it’s typically not required to put 20% down. According to the Profile of Home Buyers and Sellers from the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. It may sound surprising, but today, that number is only 13%. And it’s even lower for first-time homebuyers, whose median down payment is only 7% (see graph below):



Registration will begin April 3rd. All potential buyers will need to submit some documents, along with a CalHFA pre-approval letter from a lender as part of CalHFA's registration requirements.

Registration will close on April 29th. Shortly after, they will begin issuing vouchers in a lottery style to the winners. Each voucher lasts for 90 days so buyers who receive one will need to move quickly on their purchases.

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