The average down payment for FHA purchase loans originated in the first quarter was 2.9% of the purchase price while the average down payment for conventional loans was 18.4% of the purchase price.
In dollars, the average down payment for FHA purchase loans originated in the first quarter was $7,609 while the average down payment for conventional loans backed by Fannie Mae and Freddie Mac was $72,590.
FHA loans as a share of loan originations increased throughout the quarter, from 21% in January, to 22% in February and to 25% in March.
Additionally, the share of low down payment loans — defined in the report as purchase loans with a loan-to-value ratio of 97% or higher, which would mean a down payment of 3% or lower — was 27% of all purchase loans in the first quarter, up from 26% in the fourth quarter and 26% a year ago. This marks the highest share since second quarter 2013.
Low down payment loans accounted for 83% of FHA purchase loans originated in the first quarter, while 11% of conventional loans were low down payment loans.
The share of low down payment loans was increasing throughout the quarter, from 26% in January to 27% in February to 29% in March, according to the report. The overall volume of loans was also much higher in March compared to the first two months of the year.
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