According to a new report from Realtor.com, the median down payment in the U.S. fell to its lowest level in four years. 

In Q1 2026, the median down payment was $23,400, or 12.8% of the purchase price. Down payments have now declined for four straight quarters, with a median of $28,900 one year ago. 

A lot of buyers are still operating off an old number: 20% down. But the average amount buyers are putting down has been below 20% for years. Right now, the difference between what buyers assume they need and what they're actually putting down is wider than it's been in a long time.

Today, I'm breaking down what the data shows and what it could mean for you if you're thinking about buying a home in Richmond, Virginia.

 

What the Q1 2026 Data Shows

The headline number is $23,400, or 12.8% of the purchase price. To put that in context, the pre-pandemic norm back in Q1 2019 was $12,500 at 10.7%. 

So even after four consecutive quarters of decline, today's typical down payment is still above where it was before the market ran up.

The regional picture varies pretty significantly:

• Northeast: 17.3% average, $57,600 median—down 1.0 percentage point year-over-year

• West: 15.2% average, $43,700 median—down 0.9 percentage points year-over-year

• Midwest: 13.6% average, $23,400 median—up slightly year-over-year, the only region to increase

• South: 11.1% average, $21,100 median—the largest drop, down 1.2 percentage points year-over-year

Why Down Payments Are Falling

A few things are happening at once, and they're all pointing in the same direction.

Inventory has been rising for 28 months in a row, according to Realtor.com's April 2026 housing report. More homes on the market means less competition, so buyers don't have to lead with a hefty down payment just to win a deal. 

As for sellers nationwide, nearly 40% now expect to make concessions, up from 30% in 2025.

Price growth has cooled alongside that. When prices aren't climbing fast, buyers aren't under the same pressure to put more down just to keep their loan amount manageable.

Mortgage rates have also eased slightly from a year ago. 

Realtor.com's 2026 forecast projects the typical monthly payment as a share of income will dip below 30% for the first time since 2022. 

It's not a dramatic change, but when you've been priced out for a few years, even a small improvement in affordability can be enough to make the numbers finally work.

The Rise of FHA and VA Loans

One of the more significant shifts in this report is what's happening with loan types.

• FHA loans have held above 24% of all purchase mortgages for five consecutive quarters

• VA loans surged to 11.7% in early 2026, their highest share in over a decade

• Together, FHA and VA programs now account for more than a third of all purchase mortgages

More buyers are using government-backed programs because those programs require less down. FHA loans require as little as 3.5% down. VA loans, for eligible veterans and service members, require nothing down at all.

These programs exist for exactly this situation, and right now they're being used at levels we haven't seen in years.

What Renters Actually Have Saved

Realtor.com’s analysis looked at how much today's renters realistically have available for a down payment. The median renter holds about $2,600 in liquid assets. Even when you factor in stocks, bonds, and IRA funds available under the IRS first-time homebuyer exemption, that number only climbs to around $2,900.

For the typical renter, the distance between what they have and what a conventional down payment requires is daunting. Saving while paying rent in most markets has been genuinely difficult for a long time.

It gets more interesting when you look at what share of renters could realistically meet different thresholds:

• About 15–20% of renters have enough saved to cover the conventional median down payment of $23,400

• That number climbs to 20–26% when the target drops to a 3.5% FHA down payment, which on the April 2026 median list price of $425,000 works out to $14,875

With roughly 45 million renter households in the U.S., somewhere between 9 and 11.7 million could potentially clear the FHA threshold right now. 

That means a lot of aspiring homeowners are closer than they realize.

What This Means for You

Down payments are falling because the market has genuinely shifted. More inventory and slower price growth have made it easier to get in with less money down than would have been possible a couple years ago.

If you've been waiting until you have more saved, it's worth taking a look at whether the math has already moved in your favor. The spring and summer market will be an important signal of whether these conditions hold.

What I'd suggest is a brief but pointed conversation with a lender about where you actually stand. You may be closer to ready than you think. If you need a referral to some local trusted lenders, contact me and I'll connect you.