The Truth About Mortgage Down Payments

by | Jun 19, 2023

For prospective first-time homebuyers, saving towards the costs of purchasing a home is often a primary focus. Although, the down payment may be the biggest concern. It is common for one to think 20% down payment is necessary. However, according to the National Association of Realtors (NAR), it may not be a mandatory requirement.

“One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership.”

And a recent Freddie Mac survey finds:

“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.”

The positive news is that, unless stipulated by your loan category or financial institution, putting down 20% isn’t a prerequisite. That implies that you might be closer to your dream of homeownership than you think.
As per NAR, the median down payment has not exceeded 20% since 2005. Presently, homebuyers’ median down payment is only 14%, with first-time homebuyers going even lower at just 6%.
What does this mean for you? It means you may not need to save as much as you originally thought.
There are numerous misconceptions regarding down payment assistance programs, including the notion that such assistance is exclusively reserved for first-time buyers. However, Down Payment Resource reports that over 2,000 homebuyer assistance programs, most of which are intended to help with down payments, are available in the U.S. First-time buyers have a variety of options to explore, and repeat buyers have options as well.
Additionally, specific loan types, such as those offered by FHA with minimal down payment requirements at 3.5%, or VA and USDA loans with zero down payment demands for qualified candidates, are available. To receive more information on desirable aid schemes for down payment, websites like Down Payment Resource exist. Subsequently, one may join hands with reliable lenders to gain insight on home buying qualifications.
Please note that a 20% down payment is not always mandatory for purchasing a home. If you wish to buy a home this year, let us discuss your homebuying objectives. Reach out to connect with us.

SOLD!! 551 Fletcher St, Northbridge, MA – $429,900

Jul 10, 2026

Enjoy the perfect blend of country space and commuter convenience in this updated 3-bedroom home on more than an acre. Hardwood floors, remodeled bath, new 3-bedroom septic system, leased solar, and easy access to Route 146 make this property a must-see.

45 Indian Hill Rd, Worcester, MA – $449,900

Jul 10, 2026

Back on the market and ready for its next owner! This spacious Indian Hill ranch offers one-level living, hardwood floors, two fireplaces, a finished lower level with ADU potential, a two-car garage, and a beautiful half-acre lot.

29-A Chilmark St, Worcester, MA – $300,000

Jul 10, 2026

Enjoy low-maintenance living just steps from Shrewsbury Street. This updated 2-bedroom townhome features energy-efficient heat pumps, hardwood floors, composite deck, garage, and a prime location near UMass Chan Medical School, hospitals, and Worcester’s popular Restaurant Row.

25 Almont Ave, Worcester, MA – $799,000

Jul 10, 2026

Build wealth with this spacious Worcester three-family home featuring three 3-bedroom units, hardwood floors, in-unit laundry, de-lead certificates, and a prime location near UMass Chan Medical School and Quinsigamond State Park.

9 Colonial Rd, Sutton, MA – $565,000

Jul 9, 2026

Looking for a home that combines comfort, privacy, and modern updates? Visit this beautiful Colonial in Sutton featuring an updated kitchen, cathedral-ceiling family room, flexible first-floor office, walk-out lower level, and a peaceful 1.41-acre wooded setting.

Contact

Diane Casey Luong
RE/MAX Vision
25 Union Street
4th Floor
Worcester, MA 01608
774-239-2937
diane@dianesmybroker.com

Buying/Selling

Listings

Recently Sold

Home Valuation Calculator

Mortgage Calculator

Homes for Heroes

Town-By-Town

Resources

Blog

Find a School

Testimonials

Media

Market Data

Auburn

Boylston

Holden

Princeton

Rutland

Shrewsbury

Sterling

Spencer

Paxton

West Boylston

Worcester

Massachusetts MLS Property Info Network (MLSPIN) - The property listing data and information set forth herein were provided to MLS Property Information Network, Inc. from third party sources, including sellers, lessors and public records, and were compiled by MLS Property Information Network, Inc. The property listing data and information are for the personal, noncommercial use of consumers having a good faith interest in purchasing or leasing listed properties of the type displayed to them and may not be used for any purpose other than to identify prospective properties which such consumers may have a good faith interest in purchasing or leasing. MLS Property Information Network, Inc. and its subscribers disclaim any and all representations and warranties as to the accuracy of the property listing data and information set forth herein.

If you have difficulty accessing content, have difficulty viewing a file on the website, or notice any accessibility problems, please contact us at 774.239.2937 to specify the nature of the accessibility issue and any assistive technology you use.

Diane Casey Luong
Author: Diane Casey Luong