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📉 U.S. Homebuyer Down Payments Drop for the First Time in Two Years

In April 2025, the typical down payment from US homebuyers fell to $62,468, a 1 percent annual decline. This marks the first drop since mid-2023. While home prices continue to rise slightly at 1.4 percent year over year, the slower pace of price growth contributes to this dip.


Despite the drop in dollar amount, the average down payment as a percentage of purchase price remained steady at 15 percent. This shows buyers are choosing more affordable properties due to near 7 percent mortgage rates and financial caution.


🏠 Why Down Payments Are Dropping (January 2025 to April 2025)

Factor

Effect on Down Payment

Slower home price growth

Less upfront cash needed

Shift to lower priced properties

Smaller cash needed

Rise in FHA and VA loan usage

Lower minimum down payments required

📊 Loan Types Driving the Change

  • FHA loans increased to 15.3 percent of financed purchases compared to 14.2 percent a year earlier

  • VA loans rose to 7.2 percent of purchases, the highest April share since 2020


These loan programs allow as little as 3.5 percent down for FHA and zero down for VA, reducing the average upfront cash required.


💵 Cash Buyers Remain Active

Roughly one third or 30.7 percent of US home purchases were made with all cash, up slightly from last year. Many buyers use cash offers to avoid high interest rates.


📍 Greater Sacramento Market Insights

Although this data reflects national trends, Sacramento area buyers are experiencing similar patterns:

  • More FHA and VA loans are helping buyers secure homes with lower down payments

  • First time buyers in Sacramento neighborhoods have more options to enter the market

  • Sellers who offer closing cost assistance or flexible payment terms may attract stronger offers


✅ How Scott Sweeney Helps You Win

  1. Sacramento focused pricing insights using county data

  2. Trusted local mortgage partners who specialize in FHA and VA lending

  3. Proven seller strategies that attract buyers and maximize offers

  4. Personalized guidance for first time and military buyers navigating assistance programs


📌 Key April 2025 Down Payment Trends

  1. Typical down payment fell to $62,468, down 1 percent year over year

  2. FHA and VA loans increased their share of purchases

  3. Cash buyers remain strong at over 30 percent of sales

  4. Mortgage rates hovering near 7 percent continue to shape affordability


🏡 Ready to Navigate Sacramento’s Changing Market?

Whether you are buying or selling in Sacramento, Elk Grove, Roseville, or surrounding cities, I can help you use today’s trends to your advantage. As your trusted NorCal Realtor, I offer:

  • Detailed Sacramento down payment trends specific to your neighborhood

  • Top lender connections with FHA, VA, and down payment assistance programs

  • Seller strategies that leverage current buyer demand


Your NorCal Realtor

M&M Real Estate

BRE Lic# 01938720

Cell: Call/Text 707-330-2324


About Scott Sweeney


SweeneySells

Full Time Realtor 13 Years +

Over 100 Families Served

Top 5% Producing Agent

Buying & Listing Specialist

Contract & Negotiation Ninja

CSUS Business & Marketing Graduate 2006


With quickly serving over a 100 families, Scott Sweeney has become a top 5% producing Realtor in the greater Sacramento area who has helped clients from the Bay Area to South Lake Tahoe. Scott has a Bachelor Of Science in Business Administration, with a concentration in Marketing from CSUS. His education, and extensive background in the hospitality, marketing, and real estate industries, have helped Scott to become one of the leading, and most sought after agents in the area.


Reach out to SweeneySells today, and take the first step towards your real estate goals!

📞707-330-2324




Top Producer 2016-2023


"I appreciate your business & referrals!"


Hours Mon-Fri 9am-6pm

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