IRVINE, CA -- RealtyTrac analyzed the size of down payments
on nearly 20 million purchase loans for single family homes and condos
nationwide from 2004 through 2014 and found that in 2014 the share of buyers
putting down 3 percent or less dropped to its lowest level during the last
decade.
Share of Buyers Using Low Down Payment Loans Drops to
11-Year Low in 2014
In 2014, 25 percent of buyers using conventional or FHA
loans put less than 3 percent down when purchasing a home, down from 27 percent
in 2013 and down from a peak of 46 percent in 2009, when a first-time homebuyer
tax credit stimulated purchases by first-time homebuyers, who are more likely
to utilize low down payment loans.
The share of low down payment loans was at 37 percent in
2006 before the housing price bubble burst, dropping in 2007 and 2008 before
jumping again in 2009. Since 2009 the share of buyers using low down payments
has dropped every year compared to the previous year.
Average down payment hit high of 15.6 percent ($58,900) in
2013
The weighted average down payment percentage has held fairly
steady between about 13 and 16 percent over the past decade. The average down
payment percentage reached an 11-year high of 15.6 percent in 2013, falling to
15.4 percent in 2014, while the average down payment percentage was at its
11-year low in 2009, when it was 12.9 percent.
An average purchase price of $291,428 and an average loan
amount of $232,527 in 2013 translated into an un-weighted average down payment
of $58,900, also the highest in terms of dollar amount of any year since 2004.
The un-weighted average down payment in dollars dropped slightly to $58,496 in
2014.
Lowest average sales prices on low down payment purchases
The lower the down payment, the lower the average price,
according to the analysis. For purchases where there was no down payment (the
combined loan amount was actually more than the purchase price, typically
indicating a down payment assistance program or purchase-rehab loan was involved)
the average sales price was $154,214, while for purchases with a down payment
of less than 3 percent but more than 0 percent, the average sales price was
$190,304.
For every down payment percentage range higher, the average
purchase price was also higher except for between the 10 to 15 percent and 15
to 20 percent range. On the other end of the spectrum, the average purchase
price in 2014 was $502,213 for purchases when the borrower put down 50 percent
or more.
For a complete copy
of the company’s news release, please contact:
Jennifer von
Pohlmann
Sr. Data PR Manager
Office:
949.502.8300 ext 139
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