10 Things to Know About Down Payments

Conventional wisdom says you need 20 percent of a home’s selling price to put down in order to purchase it. That's not the case (especially for first-time homebuyers), though it’s still considered a best practices suggestion, if possible. According to the National Association of Realtors, more than 70 percent of first-time homebuyers made down payments of less than 20 percent in the last five years. A total of 54 percent of all buyers made down payments of less than 20 percent. There are a lot of things to know to understand a down payment. Near the top of the list is understanding what a down payment actually means.