Skip to main content

Low-Downpayment Purchase Lending at Seven-Year High

Phil Hall
Aug 07, 2017
Today's first-time homebuyer is older and more likely to be single than first-time homebuyers in the 1970s and 1980s, according to a new Zillow analysis

Roughly 1.5 million borrowers have purchased a home in the last 10 months using downpayments below 10 percent, according to new data from Black Knight Financial Services (BKFS). These low-downpayment loans account for nearly 40 percent of all purchase originations.
 
“That is close to a seven-year high in low-down-payment purchase volumes,” said Black Knight Data and Analytics Executive Vice President Ben Graboske. “The increase is primarily a function of the overall growth in purchase lending, but, after nearly four consecutive years of declines, low-downpayment loans have ticked upwards in market share over the past 18 months as well.”
 
While this has occurred, the average credit score on high-loan-to-value (LTV) purchase loans is now approximately 50 points higher than those originated in the years 2004 to 2006. Among Fannie Mae and Freddie Mac loans, average credit scores are approximately 60 points higher. Furthermore, Black Knight determined that defaults among high-LTV mortgages remain low and performance has been much better than among similar loans originated in the pre-bubble period. However, more than 25 percent of all Fannie Mae and Freddie Mac purchase loans are now going to borrowers with down payments of less than 10 percent, Black Knight added.

 
Published
Aug 07, 2017
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021
Interfirst Mortgage Launches ONE, Backed By Non-Owner Occupied Properties

ONE is a unique product built on a single interest rate with no adjustments and qualifies off the cash flow of the rental property.

Industry News
Jul 16, 2021
Global Digital Lending Market Projected To Reach $27B By 2028

The Global Digital Lending Platform Market was valued at $7.14 billion in 2020 and is projected to reach $27.07 billion by 2028.

Analysis and Data
Jul 14, 2021
FOMC Discusses Raising Interest Rates

Inflationary pressures have finally forced the Federal Open Market Committee (FOMC) to discuss raising interest rates and tapering its bond-buying program.

Analysis and Data
Jul 14, 2021
Fathom Holdings Inc. Creates New Hispanic Division

Fathom Holdings Inc., a technology-driven real estate platform, announced the creation of their Hispanic Division to more adequately serve this fast-growing demographic. 

Industry News
Jul 07, 2021