For the first time in nearly two years, the median down payment for a U.S. home has dipped—down about 1% year over year to $62,468 in April. It’s a subtle change, but one that reflects a broader shift in the housing market.

The median U.S. down payment has been around 15% for most of the last four years.. Before the pandemic, the typical down payment was around 10%.

With the market cooling off, buyers are regaining leverage. Facing longer listing times and more selective shoppers, sellers are increasingly open to negotiations and concessions. That flexibility has opened the door for government-backed loans like FHA and VA loans, which typically require lower down payments.

Just over 15% of mortgaged homebuyers use an FHA loan, and just over 7% use a VA loan, both up from last year.

Usage of these loans is growing, especially in more affordable markets or areas with a strong military presence. Cities like Las Vegas and Virginia Beach are seeing a notable uptick in FHA and VA loan activity, highlighting how shifting conditions are creating new opportunities—especially for first-time and veteran buyers.

Buyers are also tending toward less expensive homes. With mortgage rates more than double pandemic lows, affordability is often still a challenge.

As the market continues to adjust, smaller down payments may become the new normal, helping more buyers break into homeownership.