In the past 12 months, 1.5 million borrowers bought their homes with down payments of less than 10 percent, marking a seven-year high, according to Black Knight Financial Services.
The bulk of the growth has not been at the lowest down payment level, that is, 3 percent or less. It is more in the 5 to 9 percent down payment arena.
Today’s loans are less risky than those issued before the housing crash. They are mostly fixed-rate mortgages, as opposed to adjustable-rate mortgages.