Bye bye, big down payment: Most homebuyers put less than 10% down

March 21, 2019 - 2 min read

Down payments dip downward

No money for a down payment? That might not be a problem. According to a new analysis, the majority of recent Millennial and Generation X homebuyers pay either no down payment or less than 10 percent when purchasing their home.

Verify your new rate

Dwindling down payments

According to a recent analysis from, nearly 20 percent of Millennial homebuyers put down zero money when buying their house, while another 40 percent put down under 10 percent.

Generation X buyers paid similarly small down payments. About 35 percent paid less than 10 percent down, while almost 15 percent made no down payment at all. Only a mere 19 percent of Baby Boomer buyers fell into either of these two categories.

6 low or no down payment mortgage options for 2019

Overall, most buyers are using their personal savings or cash for their down payments. More than a quarter use earnings from a previous sale, while 3 percent use inheritance or a gift.

Before making a 20 percent down payment, read this

Gen Xers buy the most expensive houses

The same analysis found that homebuyers 35 to 44 are buying the most expensive properties. More than 37 percent of this cohort owns a house valued at $300,000 or more. Just 25 percent of Millennials own homes in this range.

Boomers are the most likely to own a home valued much higher than their annual incomes. Nearly 40 percent of this group owns a home five times their household income. Only 12 percent of Millennials have homes this expensive, while 16 percent of Gen Xers do.

“This may be because many baby boomers are retired, living on fixed incomes in homes they paid off long ago,” the analysis found. “However, recent data suggest that housing debt is more common among Baby Boomers than for the generation before them, meaning many will face difficult financial choices in retirement.”

Verify your new rate

Get today’s mortgage rates

Making a small down payment isn’t the only way to save on your home purchase. Shopping around for your mortgage rate can help, too. See what rates you qualify for today.

Time to make a move? Let us find the right mortgage for you

Aly J. Yale
Authored By: Aly J. Yale
The Mortgage Reports contributor
Aly J. Yale is a mortgage and real estate writer based in Houston who has contributed to Forbes and worked for organizations such as The Dallas Morning News, PBS, NBC, and Radio Disney.