First-time homebuyers in 2025 took out smaller mortgages and made significantly lower downpayments than repeat buyers, yet they faced higher interest rates and a heavier financial burden on their monthly budgets.
According to a LendingTree analysis of nearly 89,000 mortgage purchase inquiries, first-time buyers sought average loans of $304,111 last year. While this is nearly 10% less than the $337,300 requested by repeat buyers, the financial strain on new homeowners remains disproportionally high.
The study indicates that first-time buyers committed roughly 23.2% of their annual income to mortgage principal and interest payments, compared to just 17.4% for their more seasoned counterparts.
A major factor driving these long-term costs is the size of the initial downpayment. New buyers intended to put down an average of just 13.8%, or $55,471, the analysis found. This sits well below the 22.8% average downpayment, amounting to $119,279, provided by experienced buyers.
Notably, nearly a third of first-time buyers planned to put down less than 10% — well below the 20% threshold that typically triggers private mortgage insurance requirements — compared to only 14.8% of repeat buyers. As a result, first-time homebuyers were offered higher average annual percentage rates of 6.44% versus the 6.35% offered to repeat buyers.
The data also highlights shifting demographics among new homebuyers. The age of the average first-time homebuyer — a point of much disagreement in the industry — was 37.5 years old in 2025, an increase from 35.8 in 2024, per LendingTree’s analysis. And the average annual income of a first-time buyer dropped year over year from $100,889 to $95,309, while their average credit score slightly decreased to 707.
In contrast, the average repeat buyer was 50.5 years old, boasted an annual income of $140,029 and held a credit score of 736.
Despite these financial disparities, first-time homebuyers received an average of five lender offers compared to 5.3 for repeat buyers, and they continue to dominate the mortgage inquiry landscape. In 2025, first-time buyers made up 59.2% of the market, a slight increase from 57.3% in 2024.
Surprisingly, many of the nation’s most expensive real estate markets saw the highest concentrations of new buyers, with California dominating the metropolitan areas where these buyers made up the largest share of the market.
San Jose led the nation, with first-time buyers accounting for 75.2% of loan shoppers, followed by Fresno (73.2%) and Los Angeles (72.9%). The only non-California metros to break the top 10 were Boston (68.8%), New York (68.5%) and Seattle (66.9%).
Conversely, more affordable Southern and Midwestern markets saw the smallest share of first-time buyers. Oklahoma City and Jacksonville, Fla., tied for the lowest share at 55.6%. The financial contrast between these markets is stark: The average loan amount for a first-time buyer in San Jose was $642,766, compared to just $218,830 in Oklahoma City.
