Low down payment purchases (3% down or less) represented the highest share of all home purchases that we’ve seen in nearly 2 years according to the First Quarter 2015 Down Payment Report from our partners over at RealtyTrac. This is a big bounce back from a decade long low in low down payment purchases in Q3 2014.
“Low down payment loan share is going up, reflecting increased sales activity combined with more availability in and awareness in low down payment programs. We’ve seen strong activity in FHA financing in the first quarter in both LA and Orange Counties,” said Mark Hughes, First Team’s COO.
Here in SoCal, low down payment loans were 18% of all purchase loans in Los Angeles County and 10% of all purchase loans in Orange County. “Low down payment lending is increasing as a share of an increasing total and that is a good sign. If lenders can just keep their wits about them this time it should continue to lead to a more stable, growing marketplace with limited downside distress.”
