Co-Borrowers Account For 23 Percent Of Single Family Home Purchase Loans In Q2 2017

IRVINE, Calif., Sept. 7, 2017 /PRNewswire/ -- ATTOM Data Solutions, curator of the nation's largest multi-sourced property database, today released its Q2 2017 U.S. Residential Property Loan Origination Report, which shows that more than 2 million (2,033,296) loans were originated on U.S. residential properties (1 to 4 units) in the second quarter of 2017, up 27 percent from a three-year low in the previous quarter but still down 12 percent from Q2 2016.

The loan origination report is derived from publicly recorded mortgages and deeds of trust collected by ATTOM Data Solutions in more than 1,700 counties accounting for more than 87 percent of the U.S. population. Full Methodology.

The report also found that 22.8 percent of all purchase loan originations on single family homes in Q2 2017 involved co-borrowers — multiple, non-married borrowers listed on the mortgage or deed of trust — up from 21.3 percent in the previous quarter and up from 20.5 percent in Q2 2016.

"Homebuyers are increasingly relying on co-borrowers to help with home purchases, particularly in high-priced markets where sizable down payments are necessary to compete," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "This rising trend in co-borrowing is helping to eke out increases in purchase loan originations despite affordability and supply constraints."

Highest share of co-borrowers in San Jose, Seattle and Southern California
Among 42 cities with at least 1,500 purchase loan originations on single family homes in the second quarter, those with the highest share of co-borrowers were San Jose, California (50.9 percent); Miami, Florida (45.2 percent); Seattle, Washington (39.1 percent); the Southern California cities of Los AngelesSan Diego (29.4 percent).

"Climbing home prices are forcing more and more borrowers to consider other options, such as leveraging a parent's credit, in order to qualify to buy," said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market. "Given the ongoing concerns about the emergence of another housing bubble, it was encouraging to see that Seattle has the tenth highest average down payment in the U.S. at 14 percent."

Median down payment percentage at highest level since Q3 2014
The median down payment for single family homes and condos purchased with financing in Q2 2017 was $18,850, 7.3 percent of the median price of the homes purchased — the highest level since Q3 2014, when it was 7.4 percent.

"Across Southern California we are witnessing the pro-longed effects of low listing inventory, creating greater competition among purchasers and transforming the methods of financing being utilized," said Michael Mahon, president at First Team Real Estate, covering the Southern California market. "Higher competition among home purchasers, often times involved in multiple-offer situations, is hampering the abilities of potential borrowers to leverage low-down payment loans such as FHA and VA financing options."

Share of FHA and VA loans drops from a year ago
Loans backed by the Federal Housing Administration (FHA) accounted for 13.6 percent of all residential property loans originated in Q2 2017, up from 13.3 percent in the previous quarter but down from 14.1 percent in Q2 2016.

Loans backed by the U.S. Department of Veterans Affairs (VA) accounted for 6.5 percent of all residential property loans originated in Q2 2017, down from 6.6 percent in the previous quarter and down from 7.3 percent in Q2 2016.

Purchase origination dollar volume up to 10-year high, refi dollar volume down 32 percent
The total dollar volume of loan originations in the second quarter — including purchase, refinance and HELOC originations — was nearly $509 billion, up 31 percent from the previous quarter but still down 12 percent from a year ago.

The total dollar volume of purchase loan originations in the second quarter was nearly $257 billion, up 67 percent from the previous quarter and up 7 percent from a year ago to the highest level since Q2 2007 — a 10-year high.

The total dollar volume of refinance originations in the second quarter was more than $188 billion, up 1 percent from the previous quarter but still down 32 percent from a year ago.

Full Report

About ATTOM Data Solutions
ATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial properties.

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SOURCE ATTOM Data Solutions

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