The 20 percent figure is common, but it's not set in stone. In fact, according to a new report from Realtor.com, in 2019, the median down payment on a home in the first three months of 2023 is only 13 percent of the sales price. And that's down from a peak of 14.1% in the second quarter of 2022.

Also, this is the down payment for all home buyers, but if you look at first-time buyers in particular, their down payment is typically only 6% of the price of a home (16% for repeat buyers).

Of course, there are many reasons why you should put 20% down on a home. But most banks will allow you to put down less - and yes, you can put down more if you feel flush with cash.

Let's look at the pros and cons of making different down payments for a house.

If you can't afford a 20% down payment, there are many lenders that will allow you to make a smaller down payment on a home. Here are those options:

FHA loans. The Federal Housing Administration (FHA) offers mortgages with down payments as low as 3.5%, which varies by market if your annual income is below a certain amount.

USDA Loans. USDA will allow you to make a 0% down payment on a qualifying home, usually in rural areas. And your income must meet certain low requirements.

Veterans Loans. Veterans can put $0 down. (And on average, 20% of homebuyers are veterans).

While you can find decent terms when you put less than 20% down, keep in mind that because you will be financing a larger amount, your payment will be higher no matter how favorable the terms you negotiate. And you'll be paying more interest, so the house will end up being more expensive.

This may sound like a huge change, but if you make a 20% or higher down payment on a house, you'll end up paying less. That's because when you make a 20 percent down payment, you won't have to pay private mortgage insurance, which can add a few hundred dollars to your monthly house payment.

"Mortgage insurance exists because lenders," explains mortgage banker Craig Berry in The Mortgage Report, "...... take on additional risk when the homeowner's equity is small.

Both private lenders and the Federal Housing Administration have mortgage insurance programs. Whichever one you choose, you may have to pay a one-time fee up front and then pay another amount that will count toward your monthly mortgage payment.

The only benefit of mortgage insurance is that it doesn't last forever. When your loan-to-value ratio reaches 80% (or if you have paid the equivalent of 20% of the value of your home), you can ask your lender to stop charging you for insurance. Once the loan-to-value ratio reaches 78%, the lender is legally obligated to cancel it.

Another benefit of putting 20% down on a house is that this is often the magic number at which you will get a more favorable interest rate. Thus, you can see the various benefits of saving for a 20% down payment when possible.

People who have inherited a windfall sometimes choose to put more than 20% down so that their payments will be lower and they can avoid paying mortgage insurance.

But others, with very low credit scores, have lenders requiring them to put more than 20 percent down.

And if your credit score is below 620, you'll likely have to put more than 20% down to get a conventional loan.

There is a surprisingly large amount of down payment and home loan assistance available for those in need. It comes in the form of low-interest loans, grants and tax credits. According to Sean Moss of downpaymentresource.com, in some cities you can get up to $100,000 in assistance to buy your first home.

Of course, most of these programs depend on factors such as your income, maximum home price, and even your occupation. Ask your real estate agent about the types of programs you might qualify for.

For most people, a home is the biggest financial commitment they'll ever make, but don't let that intimidate you. If you really want to own your own home, there are many resources available to help you make it a reality.