The number of first-time homebuyers making small down payments dropped in March, according to the latest edition of the Down Payment Report.
Using data from the National Association of Realtors, the May edition of the report found that 63 percent of first-time homebuyers put down a payment of less than 6 percent, a decrease from 65 percent in February.
Among first-time homebuyers who obtained a mortgage and whose transactions closed in December 2016 through March 2017, 78 percent made a down payment of less than 20 percent, compared to 80 percent in whose transaction closed in December 2016 to February 2017.
First-time homebuyers are more likely to take advantage of a low down payment loan compared to all homebuyers. Among all buyers whose transaction closed in March 2017, 62 percent of those who obtained a mortgage made a down payment of less than 20 percent.
A survey conducted by the Down Payment Report and Zillow confirmed that down payment requirements hold many would-be homebuyers back from purchasing a home.