Why are Average Down Payments Shrinking?
By David Tipton, GRI, ePro, SRES, Real Estate Broker - Tampa
(Grady David Tipton Brokerage)
Why are Average Down Payments Shrinking When Buying a Home? Most of today’s first-time Tampa FL area home buyers are aware that they’re no longer tied to strictures laid down in previous eras—especially the one dealing with 20% down payments. For buyers with stellar credit histories, that’s horse-and-buggy material. Last year, the U.S. average down payment was just 12%—but for first-timers, that average dropped to 6%! Relaxing steeper down payment requirements makes sense for everyone. It expands the field of buyers, so sellers and lenders benefit. But most of all, for first-time homebuyers who would need many years to save up the cash required for a 20% down payment, the advantage of being able to buy sooner (and thus, to begin building equity sooner) couldn’t be clearer. And today, wi...
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