What Is the Average Down Payment in Orange County, CA?
Based on recent studies, The Los Angeles / Orange County area is one of the ten U.S. metros with home buyers making the highest average down payment. A research group from Realtor.com conducted the March study, and found that the average down payment among home buyers in L.A. and neighboring Orange County was 17.9%.
Their investigation consisted of buyers who came in with smaller down payments by using FHA and VA loans along with those who made a lot more than the average (possibly to stay clear of mortgage insurance). So it’s a fairly thorough report of mortgage trends by the city.
Here’s an overview of their findings:
• L.A. / Orange County ranked third within the U.S.’s 50 largest metro areas with an average down payment of 18% for home buyers.
- The county that features Disneyland wasn’t the only Southern California city to be listed in the top ten. Coming in at #5, San Diego made the list with home buyers putting up a 15.9% average down payment.
- The number one city where buyers put up the most is in San Jose, California with an average of 23.9% on a home. San Francisco was number two.
The average down payment is said to be affected largely by local demand and competition where bids need to be strong to be under contract. Therefore, a larger down payment will make a motivated and serious home buyer’s offer be noticed more favorably. And with a stable job market and appreciating home values, Orange County is a highly competitive market these days, with prospective buyers having to bid on multiple homes.
The analysis concluded the average down payment in 2018 when purchasing a home in L.A. / Orange County. That doesn’t make it mandatory that you have to come in with a 20-percent down payment to buy your home. The average and required amounts are two different things. There are much lower down payment mortgage products borrowers can use (and do use) to buy a home.
Why You’re Able to Put Down Less
Down payments can be a major concern for home buyers as well as the realtor representing the buyer. All things considered, we’re talking about making an offer on a home that you really want to get.
The fact is, there are mortgage programs available that allow for a down payment as little as 3% – 3.5%. And eligible military home buyers can qualify for 100% financing by using the VA home loan.
Moreover, numerous home buyers in Orange County may be able to use money given by another person to take care of their down payment. The majority of loan programs available these days allow relatives to provide gift money to home buyers up to a certain percentage.
So there’s no reason to be deterred by thinking you need a 18% or more down payment among L.A. / Orange County home buyers. You may actually be eligible for a home mortgage that allows for a 3 – 5%. And some or all of the money may be provided by someone else. So you don’t have to rent forever and regretfully pay those rent increases that happen every year or so.
