Home Loan Down Payments Are in Decline: Will Uncle Sam Ride to the Rescue?
November 18, 2016
President-elect Donald Trump has enough problems on his hands as his administration takes shape, with the economy, health care, geopolitical strife and a divided country all on his plate.
Chances are, dealing with a weakening real estate market, especially related to lower down payments, hasn’t entered his mind.
According to the November Down Payment Report, from Down Payment Resource, median down payments from first-time home buyers fell to just 4% of the home’s value, down from 6% in 2015. At the same time, home down payments for FHA-backed loans are also at 4%, signaling that homebuyers aren’t saving enough for home down payments, and thus face higher monthly mortgage payments.