From New Jersey Newsroom:
Out of all 50 states, New Jersey has the highest average down payment on real estate purchases, according to a new report published by LendingTree.com, an online resource for personal financial management.
For residential real estate transactions, New Jersey boasts an average 13.76 percent down payment, roughly 1.5 percent higher than the national average. Conversely, North Dakota has the lowest average with 11.37 percent.
Following New Jersey in the top five are Washington, D.C., New York, Hawaii and California. Rounding out the bottom with North Dakota are Wyoming, Oklahoma, Utah and Tennessee.
The study comes on the heels of a federal proposal that would require homebuyers to pay at least 20 percent of the down payment when purchasing a house. The measure was met with much controversy and public outcry earlier in 2011; its fate has yet to be determined.
“If federal regulators were to adopt the proposed 20 percent down payment requirement, a majority of borrowers wouldn’t be able to meet the standard given the findings in this report,” stated Doug Lebda, founder and CEO of LendingTree, in an official press release. “While this rule has yet to be put into effect, borrowers should be aware of the possibility and plan for future home loan needs.”