When buying a home, one of the key components is the down payment. Back a few years ago when the housing bubble was hitting it’s peak, there were no money down loans floated out there, but those are ancient history. Now you need hard money to make the loan.
Lending Tree commissioned a study and measured the states on what the average down payment for a home was in each state. From the low 3.5% down FHA and VA loans to the private loans that are looking for 15% to 20% or higher, the range for all the states in the country range from the high in New Jersey of 13.71% down to the low of West Virginia at 11.86%.
To be honest, I was a bit surprised the difference between the states is so little. This tells me that lending standards are tightening up, borrowers are having enough skin in the game to protect the banks from losing too much in foreclosure, and that the lending environment is becoming healthier.
This is all good news for the real estate industry.
Top 10 States With Highest Down Payment
- New Jersey – 13.71%
- Washington D.C. – 13.50%
- New York – 13.47%
- Hawaii – 13.33%
- California – 13.22%
- Florida – 13.16%
- Alaska – 13.06%
- Connecticut – 13.03%
- Nevada – 12.98%
- Massachusetts – 12.98%
See all 50 States here at Lending Tree
{ 46 comments… read them below or add one }
Real Estate and Data… that's what we like to see! I have some data collection tips of my own to pass along. Data collection can serve as another way to use the information you have in order to make informed decisions… especially concerning real estate.
Take a look at this webinar on Metrics that Matter from an Owner & Investor, Timothy Donahoe. You learn about identifying key areas for metrics and visibility to mitigate risk and enhance investor returns.
http://blog.buildingengines.com/2011/10/executive…
This is great news across the board! Lower risks for everyone involved.
Thanks for sharing this information, Tom! I am currently thinking of investing in Fort Myers homes for sale and seeing that it occupies the 6th slot on the Top 10 States with the Highest Down Payment makes me smile. After researching about the place, I have discovered the reason why. If this is an indication for what you said about "borrowers are having enough skin in the game to protect the banks from losing too much in foreclosure" then I am even more convinced, I have a reason to smile after all!
I will continue to check your blog every now and then because I know you share good real estate information that I can use as guide.
Thanks for sharing this information, Tom! I am currently thinking of investing in Fort Myers homes for sale and seeing that it occupies the 6th slot on the Top 10 States with the Highest Down Payment makes me smile. After researching about the place, I have discovered the reason why. If this is an indication for what you said about "borrowers are having enough skin in the game to protect the banks from losing too much in foreclosure" then I am even more convinced, I have a reason to smile after all!
I would think states with high in-migration of empty nesters like Florida would drive percentages up
Hey Tom, thanks for sharing such a great information. It is good to know that New Jersey is on top. I have bookmarked this post. Thanks once again for sharing a great stuff.
This is indeed one of the good news I read for the real estate industry. Based on the figures you have shared lending environment is becoming healthier and the difference on each state is very little compared on the previous years.
I come acoss this writing by Yahoo search engine. figured I should take a look around. I read few content on this website. Look forward to checking out your some of your posts again.
Very interesting to see how close they are. It seems like the market is stabilizing across the board.
As usual, Florida is in the top ten – being one of the U.S. most tourist oriented states it is no surprise.
Surprisingly however, is Nevada.
I'm actually surprised at these numbers. As a loan officer, I sure see a lot of FHA loans for purchases. Of course the FHA insurance fees are so high maybe buyers are seeing the advantage of putting 20% down.
You are right Tom, the lending industry is becoming healthier and healthier. In fact, most of the homes for sale especially in Bal Harbour homes for sale, are requiring 20% down payment and not all home buyers have this amount on hand right on. Why, not think of unique ways on how to save for a down payment like selling stuff on eBay?
Thank you for this post, it was very informative Tom.
If I were a home buyer, I will most likely look for a properties in Lubbock real estate. Yes, Lubbock is located in Texas and Texas is not even included in the list of States with the highest down payment. Thank you so much for posting this data in your blog, Tom. I will be back to browse for more good reads on real estate here.
I'm happy to see that Oregon isn't in this list – I've had a hard enough time trying to sell property in Salem! Things would be much more difficult if we had the highest "down payment" rate in the country, LOL. Thanks for sharing this info too, very appreciated! Shocked that NJ is at the top… totally shocked.
I was very pleased to bump into your post. Very informative for home buyers I know and will really help them in their search for homes for sale.
I'm actually kind of surprised the down payments are this high. People just don't have as much equity these days to transfer into a new house and FHA loans have gotten really popular, which require less of a down payment. I would have guessed the average down payment to be less than this.
I thought that New York would have the highest down payment compared to other states in America. Thanks for sharing this information.
Thanks for sharing this list Tom. This will once again be a helpful information for investors and buyers alike.
All these states are the most competitive when it comes to the real estate market. No wonder, I am seeing this data. Thanks for this post Tom!
Hi. This is a great information. My partner and I are torn between renting or just buying a house. After seeing this post, I say we just rent. New Jersey tops the list
Interesting info, thanks for sharing! .. New Jersey 13.71% .. funny
Thank you for the update…. Anywhere in the world is really difficult to buy a new home, especially in the above states.
Great article… very interesting stats. Honestly I'm not too surprised by the top 5 though. Like you said, at least it is good for the industry. Thanks for sharing!
I agree. It was surprising to see Nevada on the list of the top 10, but I was sure California would be up there!
With this information, investors must be aware and properly choose where to invest or if in case they want competition, they must ready for a hussle.
Close fight for each and everyone on the top 10 and of course Nevada surprised me as well. How come?
Really? that is very amazing…
But there is no images of those real estate.
This is very useful information for investors. Actually Tom, I am also planning for the investment NY. So i will keep it in my mind. Good Job Tom.
http://www.scribd.com/doc/78738751/Besides-Reduce…
I wanted to thank you for this excellent read!! I definitely loved every little bit of it. Cheers for the info!!!! & This is the perfect blog for anyone who wants to know about this topic. You know so much it’s almost hard to argue with you
California was an obvious pick, can't believe Nevada, but judging by the previously left comments it looks like nobody can! Glad to see that Idaho remains far away from the top ten. Good place to do real estate!
Looks like the states that made the top ten are the most competitive ones. Go Florida, number six! I work out of Naples, I'm not bragging, just saying!
Do you have a page on Twitter or Facebook cause would be grateful if i am one of your followers and fans.
Thanks!
This is a great post, thank you for sharing this update and it's great that Alaska was the top 10. And yes this is a good news for the real estate industry.
Very informative, thanks for sharing this. Would you please tell me the rates in LA..?
Interesting information! good to know when helping with relocations!
Many people are looking for a home and it's a great news to know these 10 states with highest down payments to make sure they are aware of it. Thanks!
Great article! Well, it is not surprising to see these states in the list. Competition is really tough in this areas. Real estate agents focused on these US states should use this as a guide so they will know how to effectively strategize better on their marketing skills.
Very interesting data! The down payment were just high. Thanks for sharing a very informative post. This will surely help me a lot.
Hah! no surprise why New Jersey is up there. It spells a great city to consider for lots of home buyers if only they can afford it
If you are a home buyer, it is wise to go for places not listed in there. That's how you make use of this good information.
I have to agree with Margo. This information must be used and applied. Useful piece of information to buyers and investors.
Wow, I'm very surprised to see NJ so high! I lived in NJ and now in Hawaii, I would have assumed that HI has a higher down payment (with so many cash sales driving the numbers up).
Wow what a nice post.I like it.
Thanks for more sharing……….
One thing is for sure. This list is gonna change in 2012. Thanks for the information.
I wouldn't be as active as a Realtor now if the market is not this good. Im loving 2012. Looking forward to that list.
It was surprising to see the differences in down payments! Was a little surprised to see New Jersey as number one though!