The share of high loan-to-value ratio purchase loans is at a two-year high, according to RealtyTrac's 2015 Down Payment Report for the first quarter, released Thursday.
The U.S. property data services provider reported the average down payment for single-family homes, condos and townhomes purchased in the first quarter was 14.8% of the purchase price. This, the lowest level since 1Q 2012, is a 15.2% decrease from the previous quarter and a 15.5% decrease from a year ago.
The average down payment in dollars was $57,710 in the first quarter — a slight increase from $57,618 in the previous quarter and decreased from $57,992 in the first quarter of 2014.
For FHA purchase loans originated in the first quarter, the average down payment was 2.9% of the purchase price, while the average down payment for conventional loans was 18.4% of the purchase price. In dollars, the average down payment for an FHA loan was $7,609; for conventional loans backed by Fannie Mae and Freddie Mac, $72,590.
FHA loans as a share of loan originations rose from 21% in January to 22% in February and 25% in March.
RealtyTrac reported the share of low down payment loans (purchase loans with a loan-to-value ratio of 97% or higher and a down payment of 3% or lower) in the first quarter was 27% of all purchase loans. This is the highest since the second quarter of 2013, up from 26% in the previous quarter and up 26% from a year ago.
Further 83% of FHA purchase loans originated in the first quarter were low down payment loans; 11% of conventional loans were low-down-payment loans.
The share increased throughout the quarter, from 26% in January to 27% in February and 29% in March, reflecting increased sales activity and awareness and availability in low-down-payment programs.
However, the share of conventional loans that were low-down-payment loans decreased, from 11% in January and February to 10% in March.
The share of FHA loans that were low-down-payment loans increased throughout the quarter, from 83% in January and February to 84% in March.
Wayne County, Mich., (Detroit) had the lowest down payment percentage in the U.S. at 12%, followed by Philadelphia County at 12.6%; Clark County, Nev., (Las Vegas) 13.3%; Riverside County, Calif., 13.7%; and Maricopa County, Ariz., (Phoenix) 14.2%.
Counties with the highest average down payment percentage were New York (Manhattan) at 37.2%; Kings County, N.Y., (Brooklyn) at 29.3%; Queens County, N.Y., 27.3%; Santa Clara County, Calif., 25.4%; and Orange County, Calif., 22.9%.
Atlanta; Washington, D.C.; El Centro, Calif.; Worcester, Mass.; and Charlotte and Greensboro in N.C. had the highest percentage of low-down-payment loans in the first quarter.
San Francisco, Marin, San Mateo and Santa Clara counties of California, and New York and Kings County had the lowest share of low-down-payment loans.
