Homebuyers are making smaller down payments due to various factors, including decreased seller resistance.

From Yahoo Finance: 2025-06-21 11:15:00

The typical homebuyer’s down payment has decreased by 1% year-over-year, the first annual decline in almost two years, with median down payments now at $62,428 or 15% of the total home value.

Factors like cash payments, cheaper property purchases with mortgages, low interest rates, and more FHA and VA loans have contributed to the decrease in down payments. Sellers are also more willing to negotiate, accepting lower down payments to make sales.

Redfin reports that buyers are being cautious with finances due to high housing costs, potential recession concerns, and layoffs, leading to an increase in first-time buyers looking for starter homes and exploring down payment assistance options.



Read more at Yahoo Finance: Homebuyers’ Down Payments Shrink For The First Time In Two Years, Even As Prices Rise