12 cities where homebuyers really need a 20% down payment
May 16, 2017 4:35 PM
New mortgage programs have made it much easier for borrowers to buy a home with a down payment that's less than the traditional 20%. While these efforts are essential to improving access to mortgage credit, consumers still have the most purchase power and home shopping options with a larger down payment.
Here's a look at the 12 cities where the number of affordable homes increases the most when buyers have a 20% down payment rather than only putting down 10%.
The data, from equity sharing financier Unison, analyzes local home prices and median wages to determine affordable inventory levels. The comparison assumes a 4% fixed-rate mortgage and a max 45% debt-to-income ratio. Cities are ranked by percent increase in affordable inventory.
Here's a look at the 12 cities where the number of affordable homes increases the most when buyers have a 20% down payment rather than only putting down 10%.
The data, from equity sharing financier Unison, analyzes local home prices and median wages to determine affordable inventory levels. The comparison assumes a 4% fixed-rate mortgage and a max 45% debt-to-income ratio. Cities are ranked by percent increase in affordable inventory.
Sean Pavone/SeanPavonePhoto - Fotolia
No. 12: Atlanta, Ga.
Median income: $58,121
Total homes: 273,378
Max home price with 10% down payment: $350,451
Max home price with 20% down payment: $419,600
Increase in affordable inventory with 20% down: 21,588 (11.85%)
Total homes: 273,378
Max home price with 10% down payment: $350,451
Max home price with 20% down payment: $419,600
Increase in affordable inventory with 20% down: 21,588 (11.85%)
Mihai Andritoiu/mandritoiu - Fotolia
No. 11: Dallas, Texas
Median income: $61,033
Total homes: 310,734
Max home price with 10% down payment: $368,009
Max home price with 20% down payment: $440,623
Increase in affordable inventory with 20% down: 24,905 (11.95%)
Total homes: 310,734
Max home price with 10% down payment: $368,009
Max home price with 20% down payment: $440,623
Increase in affordable inventory with 20% down: 24,905 (11.95%)
Andy - Fotolia
No. 10: Salt Lake City, Utah
Median income: $63,520
Total homes: 170,020
Max home price with 10% down payment: $383,005
Max home price with 20% down payment: $458,578
Increase in affordable inventory with 20% down: 15,630 (12.39%)
Total homes: 170,020
Max home price with 10% down payment: $383,005
Max home price with 20% down payment: $458,578
Increase in affordable inventory with 20% down: 15,630 (12.39%)
Robert Crow/vividcorvid - Fotolia
No. 9: Boise, Idaho
Median income: $54,297
Total homes: 84,316
Max home price with 10% down payment: $327,393
Max home price with 20% down payment: $391,993
Increase in affordable inventory with 20% down: 8,752 (14.23%)
Total homes: 84,316
Max home price with 10% down payment: $327,393
Max home price with 20% down payment: $391,993
Increase in affordable inventory with 20% down: 8,752 (14.23%)
kanonsky - Fotolia
No. 8: Denver, Colo.
Median income: $69,754
Total homes: 304,570
Max home price with 10% down payment: $420,594
Max home price with 20% down payment: $503,583
Increase in affordable inventory with 20% down: 30,553 (14.27%)
Total homes: 304,570
Max home price with 10% down payment: $420,594
Max home price with 20% down payment: $503,583
Increase in affordable inventory with 20% down: 30,553 (14.27%)
littleny - Fotolia
No. 7: Miami, Fla.
Median income: $52,040
Total homes: 521,369
Max home price with 10% down payment: $313,784
Max home price with 20% down payment: $375,699
Increase in affordable inventory with 20% down: 73,373 (23.45%)
Total homes: 521,369
Max home price with 10% down payment: $313,784
Max home price with 20% down payment: $375,699
Increase in affordable inventory with 20% down: 73,373 (23.45%)
Jess Kraft/jkraft5 - Fotolia
No. 6: Portland, Ore.
Median income: $64,635
Total homes: 272,328
Max home price with 10% down payment: $389,728
Max home price with 20% down payment: $466,627
Increase in affordable inventory with 20% down: 42,525 (30.08%)
Total homes: 272,328
Max home price with 10% down payment: $389,728
Max home price with 20% down payment: $466,627
Increase in affordable inventory with 20% down: 42,525 (30.08%)
andreykr - Fotolia
No. 5: Seattle, Wash.
Median income: $75,822
Total homes: 261,451
Max home price with 10% down payment: $457,182
Max home price with 20% down payment: $547,391
Increase in affordable inventory with 20% down: 36,539 (36.42%)
Total homes: 261,451
Max home price with 10% down payment: $457,182
Max home price with 20% down payment: $547,391
Increase in affordable inventory with 20% down: 36,539 (36.42%)
Uladzik Kryhin - Fotolia
No. 4: Boston, Mass.
Median income: $84,955
Total homes: 179,544
Max home price with 10% down payment: $512,251
Max home price with 20% down payment: $613,326
Increase in affordable inventory with 20% down: 31,192 (47.37%)
Total homes: 179,544
Max home price with 10% down payment: $512,251
Max home price with 20% down payment: $613,326
Increase in affordable inventory with 20% down: 31,192 (47.37%)
Ron Chapple Stock/iofoto - Fotolia
No. 3: Los Angeles, Calif.
Median income: $62,312
Total homes: 2,107,188
Max home price with 10% down payment: $375,721
Max home price with 20% down payment: $449,857
Increase in affordable inventory with 20% down: 293,853 (87.67%)
Total homes: 2,107,188
Max home price with 10% down payment: $375,721
Max home price with 20% down payment: $449,857
Increase in affordable inventory with 20% down: 293,853 (87.67%)
DWP - Fotolia
No. 2: New York, N.Y.
Median income: $74,397
Total homes: 905,940
Max home price with 10% down payment: $448,590
Max home price with 20% down payment: $537,103
Increase in affordable inventory with 20% down: 172,851 (101.40%)
Total homes: 905,940
Max home price with 10% down payment: $448,590
Max home price with 20% down payment: $537,103
Increase in affordable inventory with 20% down: 172,851 (101.40%)
Andy - Fotolia
No. 1: San Francisco, Calif.
Median income: $92,501
Total homes: 183,336
Max home price with 10% down payment: $557,751
Max home price with 20% down payment: $667,804
Increase in affordable inventory with 20% down: 3,358 (132.36%)
Total homes: 183,336
Max home price with 10% down payment: $557,751
Max home price with 20% down payment: $667,804
Increase in affordable inventory with 20% down: 3,358 (132.36%)
