Good news for first-time buyers who are looking to scout a more affordable home in this crazy, spring home buying season: the average down payment dropped slightly during the first quarter of 2016. In which areas in the U.S. can buyers find a home with lower down payments?
As previously reported here on Realty Today, a lot of potential homebuyers are holding off on their purchase of a new home because of a number of different reasons. One of the reasons cited in the report was the lack of sufficient funds for the down payment.
Many first-time buyers are having a hard time saving up for the minimum required down payment, which is often 20 percent of the selling price of the house. With prices of homes in the market continuously on the rise, a lot of potential homebuyers are having a hard time realizing their dreams to own a house.
However, a recent report from LendingTree on the national down payment showed that the average down payment dropped slightly during the first quarter of 2016, reports Realtor.com. According to the report, the average down payment dropped to 16.64 percent.
The fourth quarter of 2015 showed an average down payment of 17.46 percent and 16.98 percent in the first quarter of the same year. This translates to an average down payment of $49,839 during the first quarter of 2016, which was still higher than its previous year of $44,007.
The report also showed which states in the U.S. had the highest and lowest down payments. Buyers who are looking to scout for lower down payments for houses should avoid looking at listings in New York ($78,979.51), Washington ($98,440.09) and California ($84,728.78).
Instead, first-time buyers and those who are a bit tight on the budget should be on the lookout for homes in Mississippi with an average down payment of 13.01 percent or $24,263.14, North Dakota at 13.50 percent or $32,631.16 and Alabama at 14.13 percent or $31,620.74.