Between its low average FICO score and low average loan-to-value ratio, Miami is one of the largest metros where low down payments reign.
Realtor.com used numbers from CoreLogic and found 10 metros where low down payments are most prominent, factoring in credit scores and loan-to-value (defined as how much of a down payment a homeowner made compared to the price of a house, where the higher percentage means a lower down payment).
Miami has an average credit score of 732 and an average LTV of 84 percent. Other cities on the list include Detroit, Las Vegas, and Atlanta.
“What you’re seeing is a reflection of the lower economy,” said Sheryl Pardo, spokesperson for the institute. She adds that the Federal Housing Administration (FHA) “is an important player in those local communities,” because it is helping people get into housing in these challenged areas. “Economically, FHA is king. That’s who’s helping people get on the ladder to homeownership,” she says.