 |
| Mel Watt |
IRVINE, CA -- RealtyTrac recently analyzed affordability in
more than 500 counties nationwide, looking at the impact of lowering the down
payment for conventional loans (those that can be sold to Fannie Mae and
Freddie Mac) from the traditional 20 percent to as low as 3 percent — as has
been suggested recently by FHFA director Mel Watt as a way to “increase
access for creditworthy but lower-wealth borrowers”.
While lower down payments may help pave a quicker path to
homeownership for some prospective homebuyers, a bigger obstacle to
homeownership is the additional non-mortgage debt many borrowers bring to the
table.
For borrowers
without additional debt, monthly house payments are affordable in more than 90
percent of U.S. housing markets — whether they make a 20 percent or 3 percent
down payment.
But for borrowers with the additional debt burden of student
loans and car payments, monthly house payments are affordable in less than half
of U.S. housing markets with a 3 percent down payment.
For a complete
copy of the company’s news release, please contact:
Ginny Walker
Office: 949.502.8300 ext. 268
Mobile: 323-317-5852
No comments:
Post a Comment