The Death of the 20 Percent Down Payment

It used to be axiomatic that first-time home buyers would need to come up with 20 percent of a house's purchase price for a down payment. But a new study shows that the 20 percent down payment is all but dead — and has been for quite some time, especially for first-time buyers.

More than 70 percent of noncash, first-time home buyers made down payments of less than 20 percent over at least the past five years, according to the National Association of Realtors. Just over half, or 54 percent, of all buyers put down less than 20 percent.

The typical down payment for 60 percent of first-time home buyers is 6 percent or less, according to NAR’s latest data. But NAR’s research finds few adults 34 and younger (just 13 percent) realize they can buy a house with a down payment of 5 percent or less.