As home prices continue climbing, saving for a traditional down payment has become one of the biggest barriers to homeownership. The median U.S. home price now sits above $400,000, according to the National Association of Realtors, which means a traditional 20% down payment requires roughly $80,000 in cash, putting many homes out of reach for the average buyer.
The good news is that many buyers can qualify for a conventional mortgage with as little as 3% down. On a $400,000 home, that’s only $12,000. While still a large chunk of money, it’s far more attainable for many households.
