"Understanding the True Cost of Homeownership: Down Payments, Availability, and Preparations"

Contrary to popular belief, most first-time homebuyers do not need to put down a 20% down payment. According to Jessica Lautz, deputy chief economist at the National Association of Realtors, the typical first-time buyer actually puts down around 6% or 7% on their first home. In fact, during the first quarter of 2023, the typical down payment on a single-family home represented 7.5% of the median price. There are also various programs available, including federal government-supported programs and financial institutions, that offer lower down payment options. Additionally, some states, cities, and organizations provide grants to help cover down payment or closing costs for eligible homebuyers.