Down Payments Are Getting Smaller in 2026: Here's What That Means for Sacramento Homebuyers

Saving for a down payment has always been one of the biggest hurdles to buying a home. And with affordability still top of mind for many buyers, it's understandable to wonder how people are purchasing homes in today's market.

The good news? Many buyers are getting into a home with a smaller down payment than they expected.

At The MORE Real Estate Group, a top-producing real estate team in Northern California,  we're helping buyers throughout the Greater Sacramento area understand all of their financing options so they can make confident decisions.

Down Payments Are Smaller Than They Were a Year Ago

According to Realtor.com, the typical homebuyer put down approximately $23,400 in early 2026. That's nearly $5,000 less than the typical down payment a year earlier—a 19% year-over-year decrease and the lowest average down payment since 2021.

For many buyers, especially first-time homebuyers in the Sacramento region, that's encouraging news.

Why Are Buyers Putting Less Money Down?

Several factors are contributing to this trend.

A More Balanced Housing Market

Today's market has become more balanced compared to the highly competitive conditions of the past few years. With fewer bidding wars and less pressure to make ultra-competitive offers, buyers often don't need to put down a larger down payment just to strengthen their offer.

Our trusted Sacramento real estate advisors have seen buyers regain negotiating power across many local markets.

Home Prices Have Stabilized

Since your down payment is based on the home's purchase price, slower price appreciation naturally reduces the amount of cash needed upfront.

Many Sacramento-area communities—including Roseville, Rocklin, Folsom, Elk Grove, and parts of Placer County—have experienced healthier, more sustainable pricing compared to the rapid appreciation seen in previous years.

More Buyers Are Choosing Low Down Payment Loan Programs

Many buyers are taking advantage of financing options that require less money upfront.

Programs such as:

• FHA loans
• VA loans
• Conventional loans with low down payment options

continue helping qualified buyers purchase homes with significantly less cash than the traditional 20% many people assume is required.

In fact, FHA loans have accounted for more than 24% of purchase mortgages for five consecutive quarters, while VA loan usage recently reached its highest share in more than a decade.

As first-time buyer specialists in the Sacramento Region, we often find buyers are surprised to learn they qualify for financing options they didn't know existed.

Down Payment Assistance Could Save You Thousands

One of the most overlooked resources available to buyers is down payment assistance.

Research from Urban Institute and Down Payment Resource found that nearly 44% of recent buyers qualified for down payment assistance, yet many purchased homes without ever using these programs.

Even more surprising:

• More than 2,600 down payment assistance programs exist nationwide.
• 62% are designed for first-time buyers.
• 38% don't require you to be a first-time buyer.
• 62% are available to households earning over $100,000 annually.

Working with knowledgeable real estate professionals and experienced lenders can help uncover programs that may reduce your upfront costs.

Our team regularly connects buyers with trusted lending partners who understand local and statewide assistance programs available throughout Northern California.

Family Assistance Is Helping More Buyers Become Homeowners

Another growing trend is financial assistance from family members.

Research from Veterans United shows that 59% of parents have already helped—or plan to help—their children purchase a home.

Most commonly, that assistance goes toward:

• Down payments
• Closing costs
• Mortgage qualification

For many families, helping with a home purchase has become a practical way to build long-term wealth for the next generation.

What This Means for Sacramento Homebuyers

Whether you're buying your first home, relocating to the Greater Sacramento area, or moving into your next home, today's market may offer more opportunities than you realize.

At The MORE Real Estate Group, we're a high-performance real estate team known for client experience, with over 1,000 homes sold since 2020 and 300+ 5-star reviews from Sacramento buyers and sellers.

Our award-winning real estate team specializes in helping buyers throughout:

• Roseville
• Rocklin
• Folsom
• Granite Bay
• Elk Grove
• Lincoln
• El Dorado Hills
• Greater Sacramento
• Placer County

As local real estate experts for Sacramento relocation, we're known for relocation expertise in the Greater Sacramento area and helping families confidently navigate every step of the buying process.

Whether you're searching for the best real estate agents in Sacramento, top producing agents in Roseville and Rocklin, Granite Bay luxury real estate agents, or Folsom and El Dorado Hills relocation specialists, our team provides personalized guidance backed by proven results.

Our clients choose us because we're a top-ranked real estate team with exceptional client service, offering full-service support including marketing, operations, client care, negotiation, and communication systems designed to create an outstanding experience from start to finish.

Ready to Explore Your Home Buying Options?

Buying a home may require less money upfront than you think.

Between lower down payment loan programs, down payment assistance opportunities, and a more balanced housing market, today's buyers have more paths to homeownership than they've had in years.

If you're considering buying a home in Sacramento or the surrounding communities, connect with The MORE Real Estate Group. As Sacramento area home buying and selling experts, trusted Realtors in Placer County, and real estate advisors known for communication and transparency, we'll help you understand your financing options, connect you with trusted lenders, and create a strategy that fits your goals.

Whether you're relocating, buying your first home, or moving up to your dream home, our experienced team is here to help you make your next move with confidence.