What Is the Average Down Payment on a House?
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The Curious Bag
ANSWERS: 2
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The average down payment on a house is 10% of the mortgage loan. Most mortgage lenders require a 20% down payment, but usually accept the 10% down payment if the homeowner pays for Private Mortgage Insurance (PMI). Source: http://www.mortgageqna.com/mortgage-payment/average-down-payment-on-a-house.html, http://www.homesalesri.com/buyers_financial.php
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It's difficult to say what the "average" down payment is because home values differ hundreds of thousands of dollars nationwide. 10% down on a $100,000 house is much more feasible for most Americans than putting down $30,000 on a $300,000 house. FHA requires 3.5% down for government subsidized mortgage products. Many conventional loans for owner-occupancy require between 5% and 10% down depending on location (if it's what they determine to be a "declining market" it will be 10%). The other person quoting the "20% down is required by most lenders" is not true. You can look up mortgage guidelines nationwide, but it would be much more beneficial for you to look up the information for your local area to determine what the requirements for a mortgage are. But the most important thing to consider with regard to amounts down, is to eliminate PMI (80% LTV) and if you are comfortable with the total payment given your lifestyle.
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