Average Down Payment in Phoenix Using 2025 Home Price Data
In 2025, the average down payment among first-time buyers in Phoenix is around $36,000. But the minimum requirements are even lower.
Home buyers in the Phoenix area often want to know what the average or typical down payment is, so they can plan and save accordingly.
(If this describes you, then you've come to the right place.)
This report identifies the average down payment in the Phoenix metro area at several key thresholds and across multiple loan programs. It's fully updated for 2025.
Here are the most important points covered in this guide:
Contrary to popular belief, most home buyers do NOT need to put 20% down.
The minimum down payment can be as low as 3% to 3.5% for many borrowers.
The average down payment for first-time buyers in Phoenix is around 8%.
The average for all buyers, including repeat buyers, is closer to 15%.
Borrowers seeking larger "jumbo" loans might have to put more money down.
A smaller down payment usually requires mortgage insurance, a necessary evil.
Home buyers can also use gift funds from a third party, like a family member.
20% Down Payment Rarely Needed in Phoenix
The first thing that home buyers should know is that a 20% down payment is rarely needed in the Phoenix area. Most buyers put somewhere between 5% to 15% down, and it's possible to go even lower.
Unfortunately, not a lot of people know this.
Surveys from Realtor.com and others have shown that many people believe they have to put down at least 20% when buying a house. In reality, an investment of that size is rarely needed.
Some home buyers in Phoenix choose to put down 20% or more, in order to avoid paying mortgage insurance. But mortgage lenders usually don't require 20%, unless a person uses a larger-than-average "jumbo" loan.
Here are the minimum down payments required for major loan programs:
Conventional loans: 3% - 5%
FHA home loans: 3.5%
Va home loans: 0%
Those are the minimum requirements. Next, let's shift gears and look at the average amount that Phoenix-area home buyers actually put down, in dollar amounts.
Average Down Payment Using 2025 Home Prices
According to surveys conducted by the National Association of REALTORS®, the average down payment among all home buyers was 15% last year.
(That's 15% of the home’s purchase price.)
The average down payment among first-time home buyers was 8%.
If we apply these thresholds to current home prices in the Phoenix area, we can estimate the average down payment among home buyers.
In early 2025, the median home price for the Phoenix-Mesa-Scottsdale metro area was $450,000, according to data from Zillow.
A $450,000 home price would result in the following down payments:
8% (average DP among first-time buyers) = $36,000
15% (average DP among all home buyers) = $67,500
But the averages are not minimums. As mentioned, home buyers in Phoenix might be able to put down as little as 3% on a conventional loan, or 3.5% for an FHA loan.
A 3% down payment for a median-priced ($450,000) home in the Phoenix area would come to $13,500. Putting 3.5% down for an FHA loan would require $15,750 out of pocket.
How Mortgage Insurance Ties Into This
Home buyers in Phoenix have a lot of options when it comes to the down payment, with minimum investments as low as 3% of the purchase price.
But there's a "consequence" for making a relatively low down payment on a house. While it reduces the amount of money you have to pay up front, putting less money down can bring mortgage insurance into the picture as well.
Mortgage insurance is extra insurance that protects your mortgage lender if you stop making payments on your loan. It protects the lender, not the borrower. But the borrower pays for it.
Here are the general rules for mortgage insurance across the major loan programs:
Conventional: Private mortgage insurance is usually required when the loan accounts for more than 80% of the home's value (i.e., with a down payment below 20%). The policy can be cancelled later, when the homeowner reaches a certain equity level.
FHA: Mortgage insurance is required for nearly all FHA loans, regardless of the down payment amount. Many buyers who use this program have to pay mortgage insurance for as long as they keep the loan, until they either refinance or sell the home.
VA: The VA loan program for Phoenix-area military members and veterans does not require mortgage insurance, even if the borrower finances the entire purchase price.
Most home buyers in Phoenix make down payments below 20%. That means they usually end up with some kind of mortgage insurance as well, either government-provided or private.
First-time home buyers are often perplexed when they discover they have to pay for a special type of insurance that benefits the mortgage lender, but not them.
What's often overlooked is the fact that mortgage insurance provides significant benefits for the home buyer as well. It allows you to buy a home in Phoenix sooner rather than later, by reducing the amount of money you have to save for a down payment.
Using a Down Payment Gift
How buyers who cannot afford the average (or minimum) down payment in Phoenix will be happy to know that they can potentially use "gift money" from a third-party donor.
A down payment gift is exactly what it sounds like. It's when an approved third party, such as a family member, provides money to help the buyer cover their down payment and closing costs.
So the money doesn't necessarily have to come out of your own pocket.
Most loan programs allow for gift money to be used, though some of them limit the amount that can be provided. You'll want to check with your lender about this, if it's a concern for you.
Next Up: Home Buyer Assistance Programs
In the next post, we'll be taking a look at the different down payment assistance programs available to home buyers in Phoenix.
Down payment assistance programs (DPAs) can help certain home buyers overcome these upfront hurdles along the path to homeownership. These programs offer financial aid to reduce the amount of money you have to save in order to buy a home in Phoenix.
But it's a complicated subject, so I'll be dedicating an entire post to it.
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