In the last few years, the number of homebuyers who put down substantial percentages of their home loans have increased while those who put down less than three percent have dropped. According to data from RealtyTrac, in 2006, before the housing crisis took place, 37 percent of individuals who had convention loans or ones from the Federal Housing Administration put down less than three percent of the cost of their home. As of 2014, that number dropped to 25 percent.
In the last decade, home loan down payments have averaged between 13 and 15 percent, but as the housing market began its recovery in 2013, that number jumped to 15.6 percent. The average home loan came to $232,527, and the average deposit amount was $58,900, representing the highest deposit average in 11 years.
Unsurprisingly, those who put down smaller amounts, which were more than zero but less than three percent, tended to be first-time buyers, and these individuals also tended to buy homes with lower purchase prices, with an average cost of $190,304. On the other hand, those who put down 50 percent or more tended to buy homes that were more expensive, with average costs equaling $502,213.
Recent regulatory changes from Fannie Mae and Freddie Mac that allow loans with three percent down payments may decrease the average down payment amounts in the future. However, due to strict regulations on who can take advantage of these loans, rules changes may not have a significant impact on down payment trends.