Average Down Payment Hits 3-Year Low

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The average down payment for single family homes has dropped to a three-year low due to an increasing number of first-time home buyers taking advantage of low down-payment loan programs. The data, from RealtyTrac’s Q1 2015 U.S. Home Purchase Down Payment Report, shows the average down payment was 14.8 percent of the purchase price during the first quarter of this year. That’s down from 15.2 percent in the previous quarter and 15.5 percent a year ago. “Down payment trends in the first quarter indicate that first-time home buyers are finally starting to come out of the woodwork, albeit gradually,” Daren Blomquist, vice president of RealtyTrac said. “New low down payment loan programs recently introduced by Fannie Mae and Freddie Mac, along with the lower insurance premiums for FHA loans that took effect at the end of January are helping, given that first-time home buyers typically aren’t able to pony up large down payments.” In dollars, the average down payment was $57,710 in the first quarter. For FHA loans, the average down payment was $7,609. More here.

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