Many first-time homebuyers believe that they need to be able to finance a down payment of 20 percent to buy a house. However, according to data from the National Association of REALTORS®, a majority of homebuyers purchased their home with a down payment of 6 percent or less. The current national median existing single-family home price is $254,000, making the national median 6 percent down payment $15,240.
Smaller down payments can help renters who want to own a home obtain their American dream faster by reducing the amount of time it takes to build the necessary savings. Taking small steps such as giving up buying coffee or bringing a homemade lunch to work can help potential homebuyers put aside thousands without making huge lifestyle sacrifices.
Here are some simple suggestions on how you can cut costs and save for that down payment.