Real Estate News

Home buyers’ down payment rate hits 17.28 percent; less in West Virginia, more in Hawaii

If you couldn’t quite spring for a mortgage on that house in Gig Harbor, you might want to try West Virginia.

The online home-loan enterprise Lending Tree reported Thursday that the average down payment rate for a 30-year fixed mortgage in West Virginia – the lowest in the country – stood at 14.42 percent in August.

Arkansas, Nebraska, Mississippi and South Dakota followed.

With an average rate of 16.63 percent, Washington placed 31st nationwide.

Hawaii led the country with an average down payment of 20.79 percent.

New Jersey, New York, California and Connecticut followed.

The average down payment amount for conventional loan offers made to Lending Tree customers in the second quarter was $37,577, or 17.28 percent of the loan amount. This compares to a rate of 15.78 percent recorded at the end of the first quarter.

The cause of the spike? “Borrowers have more substantial available funds, likely due to months, or years, of waiting for an appreciating housing market to jump in or back into homeownership,” the company said in a release.

“Additionally, certain markets have a competitive real estate environment, which could be forcing home buyers to put more money down for a stronger offer.”