The 11 Most Common Ways that Buyers Fund Their Downpayment

by Peter Thomas Ricci

The downpayment remains the staple of most home financing; how are buyers, nowadays, funding their downpayments?


Only 9 percent of homebuyers so far in 2013 have funded less than 50 percent of their home purchases with financing – which means that the remaining 91 percent relied on a mortgage to cover the majority of their purchase, with the essential crutch in those financing arrangements being the downpayment.

But how are homebuyers nowadays funding those downpayments? Are they utilizing savings? Family connections? Or are they resorting to pensions and 401(k)s? To find out, we consulted recent data from the National Association of Realtors, and put together the graph below:

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  • Russ Bergeron says:

    I wish the Financial Assistance category was higher. Would be interesting to see if in the Chicago area that number is a little higher. At MRED 75% of our listings are eligible for one or more Down Payment Assistance programs and we provide a link to those programs directly from the listings in our system. Clients can also link out to the Down Payment Resource and see if they qualify for assistance. A proverbial win-win-win situation.

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