12 cities where homebuyers really need a 20% down payment

Published
  • May 16 2017, 4:35pm EDT

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.

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%)

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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%)

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%)

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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%)

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%)

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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%)

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%)

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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%)

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%)

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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%)

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%)

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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%)