Conventional down payments of 20% are no longer conventional.

About 1 in 5 home buyers put down 5% or less for a home purchase.  This used to be primarily FHA loans, but has slowly shifted to more and more conventional loans under 5%.  About as many people buy outright in cash, but this has a skew towards various combinations of older and foreign investors.

Until about 20 years ago, people were more likely on average to put down 20% or more.  Now they’re more and more likely to put down 5-10%, and some banks will do PMI-free loans at 15%.  So there’s increasingly little incentive to put down 20%.

The average home price is 200k, but the average mortgage is over 300k.  The average FHA mortgage is 190k, however.

In Elizabeth Warren’s book The Two-Income Trap, the home buyers are FHA-loan households.  Something to think about regarding the conclusions she draws in the book about debt and bankruptcy.