IRVINE, CA—RealtyTrac recently analyzed affordability in512 U.S. counties with a combined population of 235 million, 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% to as low as 3% — as has been suggested recently by FHFA director Mel Watt as a way to “increase access for creditworthy but lower-wealth borrowers.”

RealtyTrac finds that heavy loads of student loan and automobile debt can be an additional barrier to homeownership.

“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,” said Daren Blomquist, vice president at RealtyTrac. “For borrowers without additional debt, monthly house payments are affordable in more than 90% of U.S. housing markets — whether they make a 20% or 3% 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% down payment.”