“Saving for a down payment takes years of discipline, which is why receiving the keys is such a meaningful milestone,” Banfield said, adding that down payments as low as 5% to 6% remain common for conventional loans in affordable markets.
Matt Schulz of LendingTree says many Americans are managing higher costs with little room for unexpected setbacks, making affordability conversations more important for mortgage professionals.https://t.co/77opIC04fe
— Mortgage Professional America Magazine (@MPAMagazineUS) June 23, 2026
What this means for brokers serving first-time buyers
Redfin’s head of economic research, Chen Zhao, tied the timeline gap directly to local incomes. “Local home prices are driven by local incomes,” Zhao said.
“In more affordable markets, buyers can accumulate a down payment much faster because home prices — and therefore down payment requirements — are significantly lower. That’s helping keep the dream of homeownership within reach for many.”
Detroit-area Redfin agent Anne Loehr, who works in one of the country’s most affordable markets, said most of her first-time clients put down just 5%. She also urges buyers to budget beyond the down payment itself.
“I always tell my first-time homebuying clients to consider finding a home that’s under budget so they can reserve funds for the additional costs of owning a home, such as regular maintenance and unexpected repairs, which can amount to tens of thousands of dollars,” Loehr said.
