10 States With High, Low Down Payments
As lenders show some signs of loosening up on credit, home buyers are bringing less money to closing. Down payment percentages for conventional 30-year fixed-rate mortgages among home buyers fell in the first quarter to an average of 16.98 percent, down from 17.59 percent in the fourth quarter of 2014, according to a new report released by LendingTree. The average down payment amount also dropped quarter-over-quarter from $47,585 to $44,007.
Read more: What's an Average Down Payment?
A report released earlier this month from RealtyTrac also found down payments were getting smaller. The average down payment for single-family homes, condos, and townhomes purchased in the first quarter was 14.8 percent of the purchase price. This is the lowest since the first quarter of 2012, according to RealtyTrac's First Quarter 2015 U.S. Home Purchase Down Payment Report.
"As lenders need more mortgage volume, average down payments start to drop," says Doug Lebda, founder and CEO of LendingTree. "More lenders are beginning to loosen their guidelines and are going after a slightly broader pool of potential borrowers. For first time home buyers, this spring and summer home-buying season is proving itself to be an excellent time to enter the market.”
The following 10 states had the lowest average down payment percentage for a 30-year fixed-rate conventional loan:
On the other hand, these 10 states had the highest average down payment percentage for a 30-year fixed-rate conventional loan:
Source: "LendingTree Reports Average Down Payments Fall in Q1 2015," LendingTree (June 12, 2015)