Short Answer
The average down payment in South Jersey varies by buyer type and price range. First-time buyers typically put down 3% to 10% using FHA or conventional loans. Repeat buyers and move-up buyers put down 15% to 25% on average. The overall average down payment across all buyers is approximately 10% to 15%. Cash buyers make up about 15% to 20% of purchases in some markets.
Down payment amounts vary significantly based on the buyer's situation and the loan program they use. First-time buyers in South Jersey often use FHA loans with 3.5% down or conventional loans with 3% to 5% down through programs like Fannie Mae's Conventional 97 or Freddie Mac's Home Possible. These programs make homeownership accessible to buyers who have not saved a large down payment. Repeat buyers, who have equity from their previous home sale, typically put down 15% to 25% on their next purchase. Investors typically put down 20% to 25% on investment properties. Cash buyers, who make up a notable segment of the market, are often retirees downsizing, investors, or buyers who have sold a home in a more expensive market. The average down payment in South Jersey is lower than the national average because of the region's affordability and the prevalence of first-time buyer programs. However, the exact average depends on the mix of sales in any given period. Down payment assistance programs are available for eligible buyers in New Jersey.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
You do not need a 20% down payment to buy a home in South Jersey. I have helped many buyers purchase with 3% to 5% down. The key is understanding your options and finding the right loan program for your situation. If you are worried about the down payment, let us talk. You might be closer to buying than you think.
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