NJ homebuyers face hefty down payments

TRD New York /
Jan.January 06, 2012 11:00 AM

Prospective homebuyers in New Jersey are facing the highest down payment rate in the country and are being asked to put down an average 13.71 percent of the total purchase price, according to a new annual report from LendingTree for 2011, cited by the New York Times.

The down payment rates in New Jersey even exceed those in New York, where the average down payment is around 13.47 percent. The national average is 12.24 percent, for the year ending in November.

Experts attributed the relatively high average down payment amount to more higher-priced housing in New Jersey than in other states. Traditionally, the higher the asking price, the bigger the down payment.

Karen Eastman Bigos, a Towne Realty Group broker working in Short Hills, N.J., said banks are often asking for higher down payments since the recession.

“I’ve sold a lot of homes where more than 20 percent down was required,” Bigos said. “I just sold a house for $1.9 million. The people were ready to put 25 percent down, and the bank said, ‘We would feel more comfortable with 30 percent.’” [NYT]


Related Articles

arrow_forward_ios
New Jersey Gov. Phil Murphy, New York Gov. Andrew Cuomo and Connecticut Gov. Ned Lamont (Credit: Murphy by Bennett Raglin/Getty Images for Montclair Film; Cuomo by Spencer Platt/Getty Images; Lamont by Bonnie Biess/Getty Images for SiriusXM)

Cuomo joins forces with Connecticut, NJ governors to combat coronavirus

Cuomo joins forces with Connecticut, NJ governors to combat coronavirus
Lucy the Elephant is for rent (Credit: iStock)

New Jersey’s most famous zoomorphic attraction is up for rent on Airbnb

New Jersey’s most famous zoomorphic attraction is up for rent on Airbnb
An aerial view and a rendering of The Element at 400 Claremont Avenue (Credit: Google Maps)

Jersey City mixed-use project lands $120M in financing

Jersey City mixed-use project lands $120M in financing
Meadowlands Arena (Credit: Google Maps and iStock)

NBC spends $750K to transform arena in New Jersey swamp

NBC spends $750K to transform arena in New Jersey swamp
Triplemint’s David Walker and John Scipione with Hoboken, New Jersey (Credit: iStock)

Triplemint expands to New Jersey

Triplemint expands to New Jersey
Thor's Joseph Sitt and the New Jersey Center of Excellence

Thor is breaking into the life sciences industry

Thor is breaking into the life sciences industry
Before demolition. the historic home at 44 Pleasant Avenue was on the market for $10 (Credit: Montclair Township, iStock)

A home listed for 10 dollars, but no one wanted it

A home listed for 10 dollars, but no one wanted it
Mack-Cali sells Paramus office property, Murphy enacts land bank reforms & more North Jersey real estate news

Mack-Cali sells Paramus office property, Murphy enacts land bank reforms & more North Jersey real estate news

Mack-Cali sells Paramus office property, Murphy enacts land bank reforms & more North Jersey real estate news
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...