By Mike Lentz | The Mike Lentz Team – Keller Williams Realty
Yes. Buyers nationwide are putting down about $5,000 less than they did a year ago, the lowest level since 2021. This shift is helping more first-time buyers in South Jersey enter the market with less cash upfront. Programs and family support are filling the gap for many.
Saving for a down payment can feel like the hardest part of buying a home. And with affordability as tight as it’s been lately, it’s fair to wonder how anyone manages it right now. Here’s something you may not have seen coming: smaller down payments are helping buyers get their foot in the door.
According to Realtor.com, the typical buyer put down about $23,400 in early 2026. That’s around $5,000 below what was typical the year before, a 19% drop year over year. That’s the lowest down payments have been since 2021 (see graph below):
So why are buyers putting less money down, and how can you put less down, too? Here’s your answer.
Why Smaller Down Payments Are Becoming the Norm
There are a few things driving the trend:
- Less competition between buyers. Part of it comes down to a more balanced market. With buyers facing less competition than they did a few years ago, there’s less pressure to put a big sum down just to stand out. Markets across Camden, Burlington, and Gloucester counties have seen this shift firsthand.
- More moderate home prices. Your down payment is a percentage of the purchase price. So, as price growth cools, the amount you need to put down may change too. In a lot of markets nationwide, prices have slowed or leveled off, and some areas are even seeing slight dips. That can translate into smaller down payments. (Locally, we’ve still seen price growth in Gloucester, Camden, Cumberland, and Salem Counties. Burlington County has leveled off a bit)
- Buyers opting for loans with lower down payments. More buyers are turning to government-backed loans, like FHA and VA, which often need little or no money down. FHA loans have made up more than 24% of purchase mortgages for five straight quarters. VA loans recently hit their highest share in over a decade, according to Mortgage Professional America.
But even a smaller down payment is still a significant chunk of cash. Saving it can be hard. So where does the rest come from? For many buyers, two things make the difference: programs built to help, and a hand from loved ones.
Help You May Not Know You Qualify For with Smaller Down Payments
Down payment assistance is one of the most overlooked tools out there. Looking at the 10 largest U.S. metros, Urban Institute and Down Payment Resource found nearly 44% of recent buyers already qualified for a down payment program. But many of them closed on their loan without tapping the help (see chart below):
The options are broader than you might assume, too. According to Down Payment Resource:
- There are more than 2,600 down payment assistance programs available
- More than half (62%) are designed to help first-time buyers
- 38% have no first-time buyer requirement, so you may qualify even if you’ve owned before
- 62% are open to buyers earning $100,000 or more
There are several NJ-specific loan and grant programs that you may qualify for. A trusted lender can walk you through the options specific to your situation.
A Boost from Loved Ones
For a growing number of buyers, help comes from closer to home. Research from Veterans United shows about 59% of parents have provided or plan to provide financial support to help their child buy a home.
That support most often goes toward the down payment. It’s followed by help qualifying for a mortgage and covering closing costs. Chris Birk, VP of Mortgage Insight at Veterans United, puts it this way:
“For many families, helping a child buy a home has become less of an optional gesture and more of a practical response to today’s affordability challenges.”
If your loved ones are in a position to help, it can make a real difference in how soon you can buy.
Bottom Line
Down payments are smaller than they’ve been in years. That opens the door for more buyers across all five South Jersey counties.
And with added help from assistance programs and a little support from loved ones, you may have more ways forward than you realized. Even smaller down payments are becoming more achievable with the right guidance and resources. Connect with a trusted lender to talk through your options.
If you want to talk through what this means for your situation, schedule a quick call and we’ll walk through it together.
For the full picture in your county, see our county market reports for Camden, Burlington, Gloucester, Salem, and Cumberland counties.
