An average down payment for homeowners that receive loans from B lenders ranges from 15-35%. Many factors come into play here. While most B lenders will encourage you to put as much as possible for the down payment, this is not advised. When committing to 15-20% you can expect an interest rate that ranges from 3.5% – 8%. Many financial experts will argue that you can pay the minimum down payment possible, lock in a lower interest rate and attempt to earn more from alternative investments. In this case, when people with bad credit are considering how much to pay for their down payment, we recommend finding the sweet spot. To find the amount that works for you, you need to test multiple scenarios. Ask the lender for various price points to see when or if the interest rate will get lower. Make sure the down payment works for you, as you will have other expenses shortly.