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%