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]