NAR Survey: Homebuyers Making Smaller Down Payments

NAR Survey: Homebuyers Making Smaller Down Payments

Inman News (11/14, Geffner) reports, "Down payments are a big deal for most home buyers, whether they are first-timers or repeat purchasers. First-timers, in particular, often struggle to save enough for a down payment, while trying to understand how the size of their down payment can dictate the terms of their loan." A survey conducted by the NAR found that typically, homebuyers made down payments of 9 percent. First-time buyers paid about 4 percent, while repeat buyers paid about 13 percent. Paul Bishop, NAR vice president of research, explained that while repeat buyers generally make 20% down payments, many of them "have made smaller down payments in recent years due to the decline in home values."