Down Payment Amounts Shrink as Lenders Chase Volume: LendingTree

Down payments decreased in size in the first quarter, as mortgage lenders loosen underwriting requirements in the quest for higher volume, LendingTree said in a report.

Down payments on 30-year, fixed-rate, new-purchase mortgages, as a percentage of the total loan amount, declined to 16.98% in the first quarter, from 17.59% in the fourth quarter. The amount of the down payment fell 7.5% to $44,007.

"As lenders need more mortgage volume, average down payments start to drop," Doug Lebda, chief executive of LendingTree, said in a news release. "More lenders are beginning to loosen their guidelines."

The decline in the average amount of down payments is good news for first-time homebuyers, Lebda said.

Kentucky had the lowest average down-payment percentage at 14.02%, followed by Alabama at 14.26%. Hawaii had the highest percentage at 20.36%, followed by New York at 20.02%.