Cities Where You Can Buy Homes with Low Down Payments
Got not-so-good credit and insufficient bank savings to make a large down payment for your home purchase? An Urban Institute report compiled a list of metropolitan statistical areas (MSA) where down payments required for home purchases are significantly smaller than in other areas.
Data from CoreLogic was used by the research firm to determine the mean origination FICO score for each MSA from May 1 to May 31, 2016. The report also considered the loan-to-value ratio of each MSA. Ultimately, the top 10 cities where the lowerst FICO scores and lowest down payments made are as follows:
Detroit-Dearborn-Livonia, Michigan (FICO: 728, LTV: 90%)
Miami-Miami Beach-Kendall, Florida (FICO: 732, LTV: 84%)
Cleveland-Elyria, Ohio (FICO: 733, LTV: 88%)
Las Vegas-Henderson-Paradise, Nevada (FICO: 735, LTV: 88%)
San Antonio-New Braunfels, Texas (FICO: 736, LTV: 90%)
Houston-The Woodlands-Sugar Land, Texas (FICO: 736, LTV: 86%)
Cincinnati, OH-KY-IN (FICO: 736, LTV: 87%)
Orlando-Kissimmee-Sanford, Florida (FICO: 738, LTV: 87%)
Riverside-San Bernardino-Ontario, California (FICO: 738, LTV: 83%)
Atlanta-Sandy Springs-Roswell, Georgia (FICO: 738, LTV: 87%)
The study also found that majority of these cities reflect certain districts with lower economies. Home ownership in the areas are mostly assisted by the Federal Housing Administration, where people from lower-income families are given the opportunity to own their homes via FHA loans.
Want to know more about these cities where you can buy homes at lower down payments and with lesser credit requirements? You can access the resource article from which this post was based here.