Mortgage Down Payments Ease as Housing Market Recovers
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The housing market is heating up and with that home prices are up nearly 11% year-over-year. Not only are home prices up, now the ultra-low mortgage interest rates that drove the move have headed sharply higher over the past few weeks as the Fed weighs tapering QE. This has left some on-the-sidelines home buyers asking what is it is going to take in terms of a down payment to buy that new house. The good news for buyers is that lenders are easing down payment requirements.
Down payments have fallen 9.4% over the past two years, according to a new study from LendingTree.
"As the housing market begins to improve, lenders are beginning to loosen their guidelines to more normalized standards and approve loans with lower down payments," said Doug Lebda, LendingTree founder and CEO. "Although a good credit score is still important to have, borrowers may have an easier time qualifying for loans after years of tight guidelines, especially as home prices rise and we see fewer homeowners underwater."
The top ten states with the lowest average down payment percentage for a 30-year fixed rate conventional loan are:
1. Mississippi - 11.9%
2. West Virginia - 12.0%
3. Alabama - 12.4%
4. Kansas - 12.7%
5. Missouri - 13.2%
6. South Dakota - 13.4%
7. Indiana - 13.6%
8. Tennessee - 13.6%
9. Idaho - 13.6%
10. Wisconsin - 13.7%
The top ten states with the highest average down payment percentage for a 30-year fixed rate conventional loan are:
1. New Jersey - 20.5%
2. California - 19.1%
3. New York - 19%
4. Massachusetts - 18.3%
5. Hawaii - 18.2%
6. Connecticut - 17.8%
7. Washington D.C. - 17%
8. Delaware - 16.9%
9. New Hampshire - 16.8%
10. Florida - 16.5%
Down payments have fallen 9.4% over the past two years, according to a new study from LendingTree.
"As the housing market begins to improve, lenders are beginning to loosen their guidelines to more normalized standards and approve loans with lower down payments," said Doug Lebda, LendingTree founder and CEO. "Although a good credit score is still important to have, borrowers may have an easier time qualifying for loans after years of tight guidelines, especially as home prices rise and we see fewer homeowners underwater."
The top ten states with the lowest average down payment percentage for a 30-year fixed rate conventional loan are:
1. Mississippi - 11.9%
2. West Virginia - 12.0%
3. Alabama - 12.4%
4. Kansas - 12.7%
5. Missouri - 13.2%
6. South Dakota - 13.4%
7. Indiana - 13.6%
8. Tennessee - 13.6%
9. Idaho - 13.6%
10. Wisconsin - 13.7%
The top ten states with the highest average down payment percentage for a 30-year fixed rate conventional loan are:
1. New Jersey - 20.5%
2. California - 19.1%
3. New York - 19%
4. Massachusetts - 18.3%
5. Hawaii - 18.2%
6. Connecticut - 17.8%
7. Washington D.C. - 17%
8. Delaware - 16.9%
9. New Hampshire - 16.8%
10. Florida - 16.5%
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