Categorized | Residential

New Jersey Boasts Highest Average Down Payment on Homes

Please Share!

According to the most recent reports, the state of New Jersey comes in as the top ranked state in terms of the size of the average down payment on home purchases. The average home sale in the state features a down payment of slightly less than fourteen percent. That number is just over one and a half percent more than the national average.

The higher average down payment has played a role in keeping home values up in New Jersey. Home values are above the national average in the state. As such, the state has an increased debt-to-income ratio.

Ranking behind New Jersey are Washington D.C., and the states of New York, Hawaii, and California.

One of the primary reasons that the study that gathered information for this report was important is that the federal government is widely considering requiring a twenty percent down payment on all homes. Many people are against the idea of the requirement of an inflated down payment. However, others believe that the success of the markets with higher down payments reflect the importance of the increase.

An increased down payment will likely lead to less foreclosures, and an overall strengthened real estate market. On the other hand, some with vested interest in the real estate market believe that a twenty percent down payment requirement would essentially make it impossible for some to qualify for home ownership.

While the report’s findings indicate that a higher down payment leads to less foreclosures, the data also indicates that a twenty percent down payment requirement would effectively make it impossible for the majority of borrowers to purchase a home.

Please Share!

About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

Leave a Reply

Twitter Chat