At the end of last year, I helped a first time homebuyer who was able to close with exactly 3.5% (FHA Loan) on a $160,000 home.  That made me curious to see how much cash my other buyers (in the past 2 years) had to bring to the closing table.  So I did an analysis of first time homebuyers (my buyers and buyers on my listings) to see what the numbers looked like.

On FHA loans, the average amount needed to close was $6335.  That average number is actually a little high since several buyers put slightly more than required.  

On Conventional loans, the average amount brought to closing was $13,450 and on VA loans where the veteran is not required to put anything down (in other words the loan is for 100% of the sales price) the average was $3595.

There are some out of pocket funds that are also needed:  Option Fee (usually a minimum of $100) and an Inspection ($350-$450).  

In January 2015, several changes came into effect to further help first time buyers.  Credit mid-scores for loan qualification went down from 620 to 600.  Down payment requirements were decreased from 5.0% to 3.0% on Conventional loans.  In addition, the Mortgage Insurance Premium was also lowered.  Top this off with low interest rates and it should be a good year for first time homebuyers. 

If you would like more information, I would love to help.  Call me!