When it comes to buying a home, one of the biggest hurdles is coming up with the down payment. And while there's no one-size-fits-all approach, most buyers don't rely on one single source. They pull from a variety of resources with creative strategies to bring their purchase within reach.
So, where is they money coming from?
According to a recent analysis of down payment composition in 2024, personal savings leads the way, making up 41% of the average down payment. It’s a clear reminder that consistent saving over time remains the cornerstone of homeownership. It may not be glamorous, but it’s effective and essential.
For those selling a home before buying another, the proceeds from that sale often provide a major financial boost. In fact, 25% of the average down payment last year came directly from the sale of a previous home. In many cases, it becomes the largest contributor to the next down payment, helping buyers move forward with greater confidence and financial flexibility.
Other strategies include tapping into retirement accounts or selling investments like stocks. Combined, these sources accounted for roughly 5–10% of the average down payment, offering buyers a way to leverage existing assets without taking on additional debt.
And let’s not forget the power of community. Gift funds from family and friends made up about 13% of down payments — a testament to how loved ones can play a meaningful role in helping buyers achieve their homeownership goals.
Whether it’s savings, equity, investments, or support from family, today’s buyers are finding resourceful ways to turn their homeownership dreams into reality.
Source: Zillow
