To pay for buying a house in 2016, buyers typically used mortgage loans, down payments from savings or gifts, government assistance programs, and occasionally home equity loans. A 20% down payment was standard for conventional loans, though lower percentages were possible with government-backed options like FHA loans. mortgage lenders required a credit score of at least 620, with higher scores securing better interest rates. Buyers could also leverage gift funds from family, provided they met specific documentation requirements.

The primary method was mortgage loans, which accounted for approximately 75% of home purchases in 2016, according to the Federal Housing Finance Agency. Conventional loans, backed by Fannie Mae and Freddie Mac, had loan limits of $417,000 for single-family homes, while FHA loans allowed down payments as low as 3.5% for qualified buyers. The average down payment across all loans was 13%, though this varied by loan type and borrower creditworthiness. Data from the U.S. Census Bureau showed that 68% of first-time buyers received financial assistance, including down payment grants or tax credits, to bridge affordability gaps. Interest rates averaged 4.1% for 30-year fixed mortgages, making borrowing relatively affordable despite rising home prices. Government programs like the FHA and VA loans, which required minimal or no down payments, helped 30% of buyers with lower credit scores or military service backgrounds. These factors collectively enabled 5.5 million home purchases in 2016, reflecting a 6.4% increase from 2015 (U.S. Department of Housing and Urban Development).