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How Much Should I Save for My Down Payment?

By Stephanie Donnell — Austin Mortgage Advisor (@BestAustinLender)

If you’re thinking about buying a home, you’ve probably heard that old rule: “You need 20% down.”
Good news — that’s basically ancient history. Most buyers today put far less down, and that’s completely normal.

Typical Down Payments Today

Here’s what buyers are actually doing:

  • First-time buyers: around 6%
  • Repeat buyers: roughly 14%
  • FHA loans: 3.5% minimum
  • Conventional loans: 3–5% minimum
  • VA loans: 0% down

The idea that everyone shows up with 20% is just not reality anymore — especially in Texas where prices have climbed.

What Matters Even More Than Your Down Payment

Sometimes a bigger down payment helps…
but only if it doesn’t drain your entire savings.

Here’s what’s more important:

  • Having an emergency fund (at least a few months of expenses)
  • A monthly payment that feels comfortable
  • Keeping cash available for life things — kids, cars, home repairs, etc.
  • Understanding closing costs ahead of time

A higher down payment can lower your monthly payment, but it shouldn’t wipe out your safety net.

There’s no “perfect” down payment amount — there’s only what works for your finances. If you want to run the numbers or compare options, I can show you the pros and cons in minutes.

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