HousingWire staffer Brena Swanson explores a LendingTree report that shows that amid tighter loan qualification criteria and less credit, higher down payments have been more common.
The higher down payments may reflect more competitive bidding for a relatively scarce supply of available for-sale home inventory. Swanson writes, quoting Doug Lebda, founder and CEO of LendingTree:
“In competitive housing markets, homebuyers will often bolster their buying credentials by offering a larger down payment. Not only could this improve a buyer's chances of securing the home, but could also help avoid delays in closing, create built-in equity and generate lower monthly payments,” added Lebda.