New York, NY, Aug. 14, 2014 -- Growing requirements for downpayments are shutting many first time buyers out of the housing market, Bloomberg News report.
Bloomberg reports that the median down payment for the cheapest 25% of properties sold in 2013 was $9,480 compared with $6,037 in 2007, citing data compiled by brokerage firm Redfin Corp.
Also, the median down payment for the cheapest 25% of homes was 7.5% of the sales price last year, up from a low of 3.1% in 2006.
Part of the problem, Bloomberg reports, is that the Federal Housing Administration raised its mortgage insurance premiums, which has prompted fewer buyers to seek FHA loans, which require downpayments of 3.5%.
The number of first-time buyers using FHA loans has falled from 56% in 2010 to 39% last year.