CHARLESTON, WV (WOWK) – A new study has dubbed West Virginia as the best state for first-time homebuyers to make the first steps toward owning their own home.
Researchers with Moneywise conducted a study to find which states had the lowest average down payment based on data from the National Association of Realtors.
According to the study, the average median value of a home in West Virginia on Zillow is about $129,103. At about 13% of the asking price, down payments for West Virginia homes average around $16,783.39.
The study shows that the Mountain State is the only state where the average down payment cost is under $20,000. Mississippi comes in second with an average down payment cost of approximately $20,517.64.
Along with West Virginia, the states of Mississippi, Arkansas, Oklahoma, Iowa, Kentucky, Alabama, Kansas, Ohio and Louisiana round out the top ten of states where first-time home buyers have the lowest down payments.
“For first-time home buyers, the challenge of finding and affording their dream home can feel insurmountable at times,” said a spokesperson for Moneywise. “But with perseverance, knowledge, and the right mortgage decision, the path to homeownership can become a reality. Armed with the knowledge from these findings, first-time home buyers can make informed decisions when it comes to choosing a state to buy their first home and work their way towards a brighter financial future.”
The study found that on the opposite end of the scale, Hawaii has the highest average for a down payment. With homes in the Aloha State averaging about $848,926 for the median value, an average 13% down payment is approximately $110,360.38. Researchers found California, Washington, Colorado and Massachusetts follow Hawaii to round out the top five states with the largest down payment first-time home buyers will have to pay.
According to Moneywise’s study, the national average down payment for a home is approximately $43,870.93.
The results from this study come as Today’s Homeowner, released data from its own study on home equity which found that West Virginia has the most “true homeowners,” or homeowners who have fully paid off their mortgage. Hawaii also made a top-ranking appearance in that study as the state with the highest overall home equity values, which means the value of homeowners’ houses is higher in the state.
Another recent study, this one from LendingTree, found that Charleston and Huntington’s metro areas were “hidden gems” for housing.