Homebuyers nationwide are putting less money down up front.

That’s according to a recent study from Zillow that showed 43.2 percent of buyers nationally are putting down 20 percent, a longstanding benchmark, while 24.2 percent of buyers put down 5 percent or less.

The study also found that the share of homebuyers putting down less up front is far greater in places like Atlanta, Georgia and Phoenix, Arizon,a where 44.5 percent and 36.9 percent of buyers respectively are putting down 5 percent or less.

These cities also have the smallest share of buyers who put down 20 percent or more when they bought a home.

With mortgage rates rising, the size of a down payment takes on even greater importance. It can make the difference between a monthly mortgage payment that’s affordable and one that stretches a household’s budget too thin.

There also seems to be some correlation between the type of place a person lives in and a down payment.

When making a down payment, 35.9 percent of rural buyers put down 5 percent or less.

Comparatively, only 24.7 percent of suburban buyers and 16.9 percent of those buying homes in urban parts of the country did the same.

Study: Homebuyers Put Less Money Down

by Banker & Tradesman time to read: 1 min
0