Because of the rise in interest rates recently, many homeowners have not been able to get the funding they needed to purchase their properties. Since 2008, lenders have also become more strict. Hopefully, there are new signs that they may be loosening up a bit and opening up more financing to eager buyers.
Down payments have gotten slightly smaller (the average is now15.73 percent of the home’s value according to a new report from LendingTree). Lenders are adjusting their minimum requirements so that borrowers have more opportunities. Lenders, on the other hand, have more confidence in the loans and in their clients because home values have risen, making home ownership a less risky investment these days.
Neighborhoods with the highest home values, like the affluent and desirable beach cities, have the highest down-payments on home loans because the property values are higher overall.
According to LendingTree, the states with the highest home values are also where down payments remain the highest percentages of the property price. Because property is worth so much in Southern California and so many people want to live in the South Bay, people are willing to put down a higher down payment to get what they want.
