The median down payment of homebuyers taking out mortgages nationally fell in April for the first time in two years, and down payments for D.C.-area homebuyers are lower than the national average.
Redfin reports the median down payment in the D.C. region in April was 10%. The national average was 15%. Ten percent is still an average of almost $62,000 in the D.C. market.
One reason for lower average down payments here is the popularity of Department of Veterans Affairs Home loans. VA loans are most prevalent in D.C., accounting for 16.5% of all mortgages in April, as well as in Virginia Beach, at 41.7% and Jacksonville, Florida, at 18.3%. VA loans generally have lower down payment requirements. Veterans, active-duty service members and eligible serving spouses qualify for VA loans.
Federal Housing Administration loans have also grown in popularity. In the D.C. market, 13.3% of loans in April were FHA loans. Nationwide, 15.3% of mortgage sales used an FHA loan, up from 14.2% a year ago.
Click here to read the rest of the article written by Jeff Clabaugh over at WTOP
