Lendingtreeren, country’s major online loan market, released its annual Ranking Of the 50 largest metropolis areas of the country, how favorable are they buy for their first homes. Lendingtree considered the following factors in its rankings: average down payment, average down payment percentage, share of buyers using a FHA loan, percentage of buyers with credit score below 680, and share of homeowners who spend 30% of their monthly income at housing costs.
major findings
- Census City, Mo., Oklahoma City, Okla.And Louisville, KY.There are metro which are the most favorable for homebukers for the first time. Although each of these area comes in the middle of the pack, when it comes to the share of buyers using FHA loans, their high ranking in other categories appeals to them for the first-time.
- Oklahoma City, Cenus city And Buffalo, NYMake the lowest pay in our study. These three areas have average down payment $ 33,188Which is much less than average down payment $ 63,216 All 50 metro beyond.
- Cenus city, salt Lake City And Oklahoma City The top 50 was the lowest payment percentage of the 50 largest metro. The average down payment percentage in these three metro is 10.4%, which is about 4 basis points less than the average in all 50 metro.
- Memphis, Tenne., Las vegas And Virginia Beach, VA.There are metro with the largest part of buyers that have a credit score below 680. More than a quarter of buyers in these areas have a credit score below 680. This suggests that people who live in these metros have a better chance to get loans with low credit scores, as they may need in other parts of the country.
- On average 22.6%, San Diego, Los angels And Sacramento, California.Buyers had the highest stake that used FHA loans. FHA loans can be particularly helpful for cash-strap, first in expensive areas like buyers, because this loan program requires smaller down payment than some other loan types for some other loan types.,
- Indianapolis, Rale, neckAnd Buffalo The smallest part of those families is spending 30% or more of their monthly income at the house. Buyers in these areas may usually expect their mortgage payments to be relatively cheap.
Homebuir tips for the first time:
- Shop around for a mortgage before committeDifferent mortgage lenders can offer separate interest rates to borrowers, even if they have the same credit profile. As a result, the first lender may not be what the best rate provides. By purchasing around, homebukers can increase the lowest possible rate of finding obstacles. The lower the rate, the more you can save on your monthly mortgage payment.
- Save as much as possible for down paymentThe more money applies towards down payment at a house, at least the total amount needs to be pledged. Not only the lenders will be more likely to approve the loan with a low loan-to-price ratio, you can also get a better rate.
- Consider various loan optionsEven outside the FHA loan, there are several debt programs that can be helpful for buyers for the first time. For example, VA Loan and USDA loans are two options for people with limited cash for a down payment, or at least-steller credit.
To see the full report, see
Procedure
Lendingtree determined the overall ranking for this study by averaging the individual ranking in each category simultaneously, and then ordered them to the lowest. Data was analyzed from more than 100,000 lending users January 1, 2021 Through 1 July, 2021 With the 2019 US Community Survey.
