There’s no single down payment number that applies to every buyer — it depends on the loan type. In Fayetteville, given the large military population, VA loans are common and require 0% down for eligible veterans and active-duty service members. FHA loans require as little as 3.5% down. Conventional loans typically start at 3-5% down for first-time buyers, though putting down less than 20% usually means paying private mortgage insurance (PMI) until you build enough equity.
For a median-priced home in Fayetteville, that means a conventional buyer putting 5% down might need somewhere in the $10,000-$15,000 range, while a VA-eligible buyer could purchase with no down payment at all beyond closing costs. USDA loans, available in some outlying Cumberland County areas, also offer zero-down options for qualifying buyers and properties.
Down payment isn’t the only upfront cost to plan for. Closing costs typically run 2-5% of the purchase price, and lenders will want to see reserves — extra savings beyond the down payment — depending on the loan program. Buyers should also factor in earnest money, which is a good-faith deposit (often 1% of the purchase price) required when making an offer, though this is credited back at closing.
The right down payment amount also depends on your goals. A larger down payment lowers your monthly payment and may help you avoid PMI, but tying up more cash isn’t always the best move if you have other financial priorities. Because Fayetteville has such a high concentration of VA-eligible buyers, many purchases here happen with little to no down payment — but that doesn’t mean it’s the right call for every buyer’s situation. Talking through loan options with a lender before house-hunting will give you a realistic number specific to your credit, income, and goals.