AVERAGE DOWN PAYMENTS SHRINK

Average down payments for mortgages are on the decline, lending a little bit of relief for affordability-challenged homebuyers around the country.

According to a report released by LendingTree, down payment percentages for 30-year fixed-rate purchase loans fell in the first quarter to an average of 15.78 percent, down from just higher than 16 percent in the last quarter of 2013.

At the same time, the company found average credit scores for borrowers matched with lenders on its own network have dropped 6 percent year-over-year, opening up the credit pool a little more.

“As the housing market improves and refinance activity declines, lenders are adapting their guidelines to improve credit accessibility for borrowers,” said LendingTree founder and CEO Doug Lebda. “Relaxed lending guidelines translates to a larger pool of qualified homebuyers that could boost the housing recovery.”

Out of the top 10 states offering the lowest down payment percentages to borrowers, North Dakota reigned with an average percentage of 12.31 percent. At the bottom of that top 10 range was Idaho with 13.81 percent; most of the list fell below the 13 percent mark.

At the far end of the spectrum, New Jersey took the top spot for the highest average down payment at 19.36 percent, followed by New York, California, Connecticut, and Hawaii.

Of course, some of the states with the lowest down payment percentages also happen to be the states with the lowest borrower health scores, as measured by LendingTree—while the opposite is true for those with higher percentages.

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About thenoelteam

As a Broker with RE/MAX Alliance, I work energetically for my clients whether they are a buyer or seller. I help you achieve your goal of owning a home or getting the best price for your home in the shortest time possible. After graduating from UCLA with a degree in communications and finance, I was licensed in 1977 and since then I have sold over 3600 properties amounting to over $1 billion in sales. I currently rank in the top 10 in home sales for Colorado. I offer the same quality of service and superior communication to all clients, ranging from starter homes to multi-million dollar estates, commercial and income properties, relocations and foreclosures My goal is to provide you with the best representation possible whether you are buying or selling. Over the years, one of the things that I've discovered is that there is a difference in the way individual Realtors do business. For me, I have always felt that honesty and personal integrity are the foundations upon which a successful business and career are built and sustained. I have an extensive background and knowledge base in real estate, including financing, which has enabled me to provide outstanding, quality advice and service not found with many agents today. My commitment to communication creates a positive relationship between my client and myself that results in a successful property sale or purchase. My passion for real estate, commitment to my clients and personal integrity has helped me to achieve success placing me in the top 1% of all brokers in nationwide. In my career, I have earned a number of awards and received considerable recognition for my success but the most significant recognition comes from the fact that over 75% of my business comes from past clients. My success is a true measure of my client satisfaction.
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