Question:

What is the typical down payment percentage when buying a home?

Answer:

The typical down payment percentage varies for different type of homebuyers.

Typical Down Payment Percentage - 2007

First time home buyers had a median down payment percentage of 2 to 3%.

A repeat home buyer put a typical down payment of 16% towards the loan when buying a replacement home. Most of those funds came from a last purchase; some used their savings accounts; others liquidated assets to arrive at the down payment. Relatives and friends also did contribute to the down payment for a very small percentage of borrowers.

On the whole, home buyers made a median 9% typical down payment percentage.

The high leverage in real estate had been provoked by high appreciation levels in many areas throughout the US and the variety of low down payment home loan products in the real estate market in the preceding year. However, given the current real estate crisis, the little or no down payment percentage some borrowers put in their homes could result in a negative equity situation.

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