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%
It seems to be nice information. Got to know market condition of various states. Thanks for sharing.
I'm happy to not see Colorado on there!
Thanks for sharing useful information for Realtors in U.S. This is one list where I'm glad to see Massachusetts on the bottom. Love to see New York on top 3 Places.
Thanks for sharing useful information for Realtors in U.S. This is one list where I'm glad to see Massachusetts on the bottom. Love to see New York on top 3 Places.
excellent informations !!
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I'm a little surprised that California is ranked 5th for size of down payment at 13.22%. With home prices being so high and the unemployment rate also being very high here ion California, 13% is a large chunk of change to come up with.
I'm in a lower priced region of California (Inland Empire – Temecula-Murrieta-Menifee-Corona area) and probably 65% of all owner occupied home purchases use either 100% financing VA-USDA loans or low down payment 3.5% FHA loans.
Could it be all the cash buyers who are skewing that down payment ratio?
Hey, thanks for sharing such a great article. I have a better understanding about real estate in US.