The National Association of REALTORS® reported that the median downpayment for all homebuyers is 10 percent. With the most recent median existing-home price reported at $232,200 in October, that comes to a $23,220 downpayment. So where are buyers finding the money for this purchase? According to NAR’s 2016 Profile of Home Buyers and Sellers, 61 percent of recent buyers obtained their downpayment from savings, 35 percent used the proceeds from the sale of their primary residence and 13 percent received a gift from a friend or relative.
Review NAR’s 2016 Profile of Home Buyers and Sellers for information on buyers’ sources of downpayments. Speak with some recent homebuyers on where they received the funds or how they saved the money for their home. Also, gather information from REALTORS®, financial planners and lenders on the best way to save money for a downpayment.