You May Need Less Down Than You Think

Down Payments Are Smaller Than They've Been Since 2021.
Here's What That Means for San Diego Buyers.

For many buyers, saving for a down payment feels like the biggest hurdle to buying a home. In fact, it's one of the main reasons people delay starting the home buying process.

But here's some encouraging news.

Recent housing data shows that the typical down payment has fallen to its lowest level since 2021, giving many buyers a better opportunity to enter today's market.
If you've been waiting because you thought you needed a large amount of cash upfront, it may be time to take another look.

Buyers Are Putting Less Money Down

According to Realtor.com, the typical buyer put down approximately $23,400 during the first quarter of 2026, a 19% decrease compared to the previous year.

Average down payments have fallen to their lowest level since 2021, making homeownership more attainable for many buyers.

Several factors are contributing to this trend.

• Buyers face less competition than they did during the peak of the market.
• Home price growth has become more moderate.
• More buyers are using financing options that require lower down payments.
  
  

What This Means for San Diego Buyers

The San Diego real estate market remains competitive, but buyers have more flexibility than they did just a few years ago.

Communities like Chula Vista, Eastlake, Otay Ranch, Bonita, and even parts of North County continue to see healthy buyer demand, but today's market offers more room to negotiate and explore financing options.

That means many buyers no longer need to compete by bringing unusually large down payments.

You May Qualify for More Help Than You Realize

One of the most overlooked opportunities is down payment assistance.

Across the country, thousands of assistance programs are available, and many buyers qualify without realizing it. Some programs are designed specifically for first-time buyers, while others are available to repeat buyers as well.

Depending on your situation, there may also be loan programs that allow for:

• Low down payment options
• FHA financing
• VA financing for eligible military members and veterans

The best way to know what's available is by speaking with an experienced lender before assuming you need 20% down.

Don't Let the Down Payment Myth Hold You Back

One of the biggest misconceptions in real estate is that every buyer needs a 20% down payment.
While putting more money down can reduce your monthly payment, it's far from the only path to homeownership.
Many buyers successfully purchase homes with much less.

The key is understanding which financing options make the most sense for your financial goals.

Bottom Line

If you've been putting off buying a home in San Diego because you thought you needed a large down payment, it may be worth revisiting your options. Today's buyers have access to more financing solutions, lower down payment programs, and assistance opportunities than many people realize.

Jose A. Hernandez and the Hernandez Realty Group bring over 20 years of local experience helping buyers understand today's financing options and navigate the San Diego housing market with confidence.

Whether you're curious about your buying power, want to estimate your monthly payment using our mortgage calculator, or would like to connect with a trusted local lender, we're here to help.

Reach out anytime to start planning your next move.