The Most Common Sources For Down Payments

There isn’t just one way to come up with a down payment. In fact, most home buyers use a combination of sources to get the funds together to buy a house. So, what are the most popular methods? Well, according to one recent analysis, savings, unsurprisingly, tops the list. Among average down payments, savings made up the largest share of the money buyers put down at 41 percent. Simply put, you aren’t going to find a quick way around the hard work of putting money aside over time. If you have a home to sell, however, that’ll help. Home buyers who sell a home before buying are typically able to use the proceeds from that sale as the bulk of the down payment for their next home. Pulling money from retirement funds and selling stocks also make the list – each accounting for somewhere between 5 and 10 percent of the typical down payment in 2024. Another popular source for down payment funds? Family and friends. Gift money made up about 13 percent of the average down payment last year.