Homebuyers cash-short in SD
By Northern Plains News
Homebuyers in South Dakota pay the second lowest percentage down on a home loan, according to a new report.
The average down payment in South Dakota is 12.5 percent of the loan amount. The average home loan is $209,022.
According to a report released last week by LendingTree, down payment percentages for 30-year fixed rate purchase mortgages continue to decline while home prices continue to rise. The study reveals that average down payments have dropped 2.74 percent since the second quarter of 2013.
“Lenders are putting more focus on purchase mortgages and are adjusting minimum requirements to attract borrowers,” said Doug Lebda, LendingTree founder and CEO. “With home values improving, the risk of borrowers defaulting on loans has decreased, giving lenders more confidence to lend with less cash down from qualified borrowers.”
The top ten states with the lowest average down payment percentage for a 30-year fixed rate conventional loan are:
1. Nebraska, 12.5 percent;
2. South Dakota, 12.8 percent;
3. Arkansas, 12.9 percent;
4. Alabama, 12.9 percent;
5. Missouri, 13.1 percent;
6. North Dakota, 13.2 percent;
7. Ohio, 13.4 percent;
8. Indiana, 13.5 percent;
9. Tennessee, 13.5 percent;
10. West Virginia, 13.7 percent;
New Jersey (18.8 percent), California (18.6 percent), New York (18.0 percent), D.C. (17.9 percent), and Massachusetts (17.5 percent) top the list with the highest average down payment percentages.
LendingTree LLC is an online source for home loans, refinancing home loans and automobile loans.