Financing the Home Purchase in 2021
- Eighty-seven percent of recent buyers financed their home purchase, down from 93 percent in 2003.
- The typical downpayment for first-time buyers was seven percent, while the typical downpayment for repeat buyers was 17 percent.
- For 61 percent of buyers, the source of the downpayment came from their savings. Fifty-six percent of repeat buyers cited using the proceeds from the sale of a primary residence, while 28 percent of first-time buyers used a gift or loan from friends or family for the downpayment.
- For first-time home buyers, 29 percent said saving for a downpayment was the most difficult step in the process.
- The majority of first-time buyers did make financial sacrifices to purchase a home. For those who did, the most common sacrifices buyers reported were cutting spending on luxury goods, entertainment, and clothes.
- Buyers continue to see purchasing a home as a good financial investment. Eighty-six percent reported they view a home purchase as a good investment.
National Association of REALTORS® |
2021 Profile of Home Buyers and Sellers