September 17, 2021

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Mortgage News

Most Accessible Metro for First-Time Buyers — RISMedia |

It’s no secret that buyers have had a tough time in recent years as demand has skyrocketed and created a competitive environment that makes it nearly impossible to win an offer on a home. However, there are areas where first-time buyers have a much easier time according to a new one Credit tree Report.

LendingTree took the following into account:

– Average down payment amount
– Average down payment percentage
– Proportion of buyers using an FHA loan
– The percentage of buyers with a credit score below 680
– Proportion of homeowners who spend 30% or more of their monthly income on housing costs

Here are the top three subways for first time home buyers:

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 that spend 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 that spend 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 that spend 30% or more of their income on housing: 21.7%

In terms of areas to avoid, the following three subways ranked as the worst spots for first-time home buyers due to prohibitive down payments and other factors: New York, San Jose, California, and San Francisco.

To view the full report, Click here.