While house hunting almost a year and a half ago, Jon and Sarah Cioffi had the unusual experience of becoming homeowners after visiting only three houses.

"We put an offer in right away and it was accepted," said Jon, who works in shipping.. "It was just pure dumb luck."

What wasn't unusual is they saved for three years to afford the down payment.

The couple, now parents to a 4-month-old daughter, bought their single-family home in East Massapequa for $577,000 in February 2024, putting 5% down — about $29,000. Another approximately $29,000 was spent on closing costs.

To get there, they saved the monetary gifts they received from their wedding, saved money for the three years they were renting in Long Beach and invested in Vanguard mutual funds, said Jon, 28.

In Long Island's low-inventory, high-demand market with inflated prices, coming up with the tens of thousands of dollars needed for a down payment is daunting for many. Luckily, experts say most first-time buyers are competing with others who don't put down anything near 20%.

What is a 20% down payment on Long Island?

What is a realistic down payment on a home on Long Island?

Luckily for first-time homebuyers, the average down payments have ranged from 6% to 9% since 2018, according to the National Association of Realtors. Even as far back as 1989, down payments rarely exceeded 10%.

Repeat buyers were able to put down 20% or more last year, NAR stated, by tapping into their home equity to buy a second time.

Andrew Sannito, a Northport-based licensed loan officer with Financial Equities, said he sees most first-time buyers putting down 5-10%.

And even that is a big swing.

Saving for a down payment "absolutely is one of the frustrations I hear," he said.

He recommends to clients that they open a savings account for their home and, whether they deposit $50 a week or $500 a week, it shouldn't be touched.

He also sees people use high-yield savings or money market accounts, while others invest in stocks, and a few have liquidated their cryptocurrency holdings.

Sannito also informs buyers about the high closing costs — which run about 4-5% of a purchase price. That would be $28,000 to $35,000 for a $700,000 house.

He advises people to start saving early and speak to a loan officer to find out what they can realistically afford, which is often less than what lenders will offer.

What are your options

Vasilios Markou, a Melville-based senior loan officer at Citizens Bank Mortgage, said while homebuyers are more savvy than ever, often they don't know their options for different mortgages.

Federal Housing Administration, or FHA, mortgages are federally backed loans that allow a down payment as low as 3.5%, while VA loans through the Department of Veterans Affairs require no down payment.

However, sellers usually accept the most financially beneficial bid, making all-cash offers or large down payments more attractive.

With the low-inventory market, sellers can afford to be picky, and putting down very little can be seen as a weak offer, Markou noted.

"That's a lot of the struggle I see on my end with first-time buyers," he said. But, he added, there is hope.

Competing when you put down less than 20%

Morgan and Kevin O'Connor

bought a house for 

$495,000

Their 10% down payment was 

$49,000

They also paid about $24,000 in closing costs.

Getting pre-approved for a mortgage before shopping is a good way to know what you can spend and shows the seller that you have the funding to back up your offer.

Work with a team of people, like a loan officer, attorney and real estate agent who will advocate on your behalf, Markou said. They will be able to communicate to the seller that the buyer has things like good, stable income and high credit scores.

"You can try to make yourself as attractive as possible with that 3%," he said.

Kevin and Morgan O'Connor found out the hard way their offers weren't attractive.

Searching for a home since midway through 2023, they were getting no bites on their zero-down offers.

Kevin, 33, a project manager in the tech industry, and Morgan, 33, a middle school teacher, had looked at between 60 and 80 houses and made about a dozen offers.

The couple then offered a 10% down payment on a few houses and, in January 2024, their bid was accepted to buy the Huntington Station house they now own.

They paid $495,000 for the house, with $49,000 down and about $24,000 closing costs, Kevin said.

They saved for a couple years, had other investments (mostly stocks and mutual funds) and decided to sell them, using the funds they hoped to earmark for home repairs.

"We definitely wanted to make sure this was ours," he said of the house.

Set realistic expectations — even if you're doing everything right

Skylar Urraro, a Huntington-based real estate salesperson for Daniel Gale Sotheby's International Realty, said she sees buyers struggle to get to the 10% mark, using high-yield savings accounts or short-term investment accounts like mutual funds.

"Most buyers I work with are becoming more intentional about saving," she said, including younger buyers using side hustles — part-time or freelance work — to boost their home fund savings accounts, along with saving their tax refunds and bonuses.

The biggest frustration is feeling like they're doing everything right: saving, budgeting and getting pre-approved, but then they're getting beat out by all-cash buyers.

— Skylar Urraro, agent for Daniel Gale Sotheby's International Realty

Urraro suggested treating the savings as if it were a monthly bill and automatically transferring it into a dedicated account, as well as cutting out nonessential expenses.

Unfortunately, it's not always enough in a competitive market.

"The biggest frustration is feeling like they're doing everything right: saving, budgeting and getting pre-approved, but then they're getting beat out by all-cash buyers," she said. "There's an emotional toll it takes on people. You fall in love with this home and losing out can be draining and do that another five to six times."

So, she works with people to set realistic expectations: Start saving early, stay disciplined and don't let setbacks discourage you.

Everyone has a different timeline

Sarah and John Cioffi

bought their East Massapequa home for

$577,000.

Their 5% down payment cost

$29,000

and they spent another $29,000 on closing costs.

Urraro also advises people not to worry about keeping up with the Joneses.

"Your timeline is your own; you can't compare yourself to your sibling, friends or co-workers," she said. "Work on building your strong financial foundation. Don't get discouraged with people you surround yourself with."

Her husband, J.T. Urraro, is managing director at Northwestern Mutual, a financial planning and wealth management firm in Farmingdale, who suggests choosing a realistic amount to save monthly.

And, have the conversation with a financial planner or someone who is in the industry that you can trust.

"Don't just wing it," he said.

Like his wife, he suggests ignoring what other people are doing with their finances and home. They may be in over their heads. In fact, he sees people "all the time" spending beyond their means.

"The most enlightening experience" for clients, he said, is seeing their monthly cash flow and how much they're spending.

"It's almost always more than they think it is," he said.

Jon and Sarah Cioffi, the new homeowners in East Massapequa, kept their spending low to build up a nest egg.

When they put down their 5%, they did so while keeping $25,000 in savings for possible home repairs and emergencies.

Sarah, 29, a licensed creative arts therapist, said once they bought their house, they cut back on ordering takeout, canceled some subscriptions and took plenty of time to furnish their home, using lots of secondhand items found on Facebook Marketplace and through family and friends.

Sarah realized she didn't have to decorate the house immediately and instead chose small projects.

"You have your whole 30-year mortgage to make your house your home," she said.