Denver The Hardest On First-Time Home Buyers: Study

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Denver The Hardest On First-Time Home Buyers: Study

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DENVER, CO — It’s no secret that Denver the housing market is tight, but a new study reveals it’s more challenging to buy a fist-time home in Denver than New York or San Francisco. LendingTree names Denver as the most challenging U.S, city for first-time home buyers.

The study looked at average down payment amount, average down payment percentage, the number of FHA mortgages being used, percentage of buyers who have a credit score below 680, the share of home sold that are affordable to the median income, and the average FHA down payment.

Denver’s number one rank among the ten worst cities for first-time buyers was an aggregate of all of the factors the study took into account, the report stated.

“Down payments are high at $66,806, and even the FHA down payment is a considerable $22,841,” the study determined.

Out of 100 cities, Denver ranked 91st in both size and percentage of downpayment. The average Denver percentage downpayment of sales price is 18 percent, the study said. A downpayment in 99th ranking San Francisco averages more than $128,000.

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Industrial states like Ohio, Pennsylvania, Michigan and Indiana present good home-buying opportunities for first-time home buyers as 12 of the top 15 cities are in these states, according to LendingTree.

Here are the 10 worst cities for first-time buyers, according to LendingTree:
1. Denver, CO
2. New York, NY
3. San Francisco, CA
4. Austin, TX
5. Las Vegas, NV
6. Los Angeles, CA
7. Oxnard, CA
8. Boston, MA
9. Sacramento, CA
10. Miami, FL

Here are the best cities to buy a first home:

1. Little Rock, AR

2. Birmingham, AL

3. Grand Rapids, MI

4. Youngstown, OH

5. Winston, NC

6. Dayton, OH

7. Indianapolis, IN

8. Scranton, PA

9. Pittsburgh, PA

10. Cincinnati, OH

Image via Matt Rourke/Associated Press

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