The top metros for first-time homebuyers are Kansas City, Mo., Oklahoma City, Okla., and Louisville, Ky., according to a new report from LendingTree. 

The company considered the following factors in its ranking: 

  • Average down payment
  • Average down payment percentage
  • Share of buyers utilizing an FHA loan
  • Percentage of buyers with credit scores below 680
  • Share of homeowners who spend 30% of more of their monthly income on housing costs.

Oklahoma City, Kansas City and Buffalo, N.Y., have the lowest down payments in the study, where the average down payment is $33,188 —  considerably lower than the $63,216 average down payment across all 50 metros.

Kansas City, Salt Lake City and Oklahoma City had the lowest down payment percentages out of the top 50 largest metros, averaging 10.4%, about 4 basis points lower than the average across all 50 metros.

Memphis, Tenn., Las Vegas and Virginia Beach, Va., had the largest share of buyers with credit scores below 680, with slightly more than a quarter of homebuyers’ ratings below 680. This suggests that people who live in these metros have a better chance of securing a loan with a lower credit score than they might need in other parts of the country.

At an average of 22.6%, San Diego, Los Angeles and Sacramento, Calif., had the highest share of buyers who used an FHA loan. FHA loans can be especially helpful for cash-strapped, first-time buyers in expensive areas like these, as this loan program requires a smaller down payment than some other loan types.

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