It’s no secret that buyers have had it rough these last couple of years, with skyrocketing demand raising prices and creating a competitive environment that makes it near-impossible to win a bid on a home. There are certain areas, however, in which first-time buyers will have it much easier, according to a new LendingTree report.
LendingTree considered the following:
– Average down payment amount
– Average down payment percentage
– Share of buyers using an FHA loan
– Percentage of buyers who have credit scores below 680
– Share of homeowners who spend 30% or more of their monthly income on housing costs
Here are the top three metros for first-time homebuyers:
1. Kansas City, Missouri
Average down payment amount: $30,219
Average down payment percentage: 10.1%
% of buyers with a credit score below 680: 21.1%
Share of buyers using an FHA loan: 10.2%
Share of households spending 30% or more of their income on housing: 20.7%
2. Oklahoma City, Oklahoma
Average down payment amount: $28,777
Average down payment percentage: 10.7%
% of buyers with a credit score below 680: 20.8%
Share of buyers using an FHA loan: 11.6%
Share of households spending 30% or more of their income on housing: 22.6%
3. Louisville, Kentucky
Average down payment amount: $46,375
Average down payment percentage: 13%
% of buyers with a credit score below 680: 20.5%
Share of buyers using an FHA loan: 10.1%
Share of households spending 30% or more of their income on housing: 21.7%
In terms of areas to avoid, the following three metros ranked as the worst places for first-time homebuyers due to unaffordable down payments and other factors: New York, San Jose California and San Francisco.
To view the full report, click here.
