New Jersey exceeds the national average down payment, reporting a 13.76 percent average down payment, which is about 1.5 percent higher than the national number.
Following New Jersey were Washington, D.C., New York, Hawaii and California. North Dakota reported the lowest average down payment on real estate purchases, with 11.37 percent.
The results of this report followed proposed legislation that would require potential homebuyers to pay at least a 20 percent down payment when buying a house.
“If federal regulators were to adopt the proposed 20 percent down payment requirement, a majority of borrowers wouldn’t be able to meet the standard given the findings in this report,” stated Doug Lebda, founder and CEO of LendingTree. “While this rule has yet to be put into effect, borrowers should be aware of the possibility and plan for future home loan needs.”
The report explained New Jersey likely topped the list as a result of the state's low loan-to-value ratio, the homes being priced higher than the national average and buyers having a higher average debt-to-income ratio, which might cause some prospective home owners to consider packing up and moving to another state.
The average value of a home in New Jersey is $270,000, according to Zillow.
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