The traditional 20% down payment on the median $412,000 home requires $82,400 (NAR, 2025).
The traditional 20% down payment on the median $412,000 home requires $82,400 (NAR, 2025). But most buyers put down less: the median first-time buyer down payment is 6-7%. FHA loans require 3.5%, VA loans require 0%, and conventional loans start at 3%.
The trade-off: less than 20% triggers PMI (private mortgage insurance) at $100-$250/month. However, saving the full 20% takes 7.2 years on average, during which home prices appreciate 3-5% annually. A buyer waiting 3 extra years may face $40,000-$60,000 in appreciation — exceeding the PMI savings..
The PivotReset Decision Support Engine shows you the 12-month financial projection for each path.
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