Housing Industry Objects to Higher Down Payment
This article brought to you by: Old Republic National Title Insurance caught my attention so I thought I'd share with you to get your opinion, I'd love to hear from you!
The housing industry is criticizing a rule proposed by the Federal Deposit Insurance Corp. that would require homebuyers to make a minimum 20 percent down payment to receive a "qualified residential mortgage."
The rule proposed as Congress continues to work on financial reforms, NAR said the high down payment would burden homebuyers and significantly impede the economic and housing recovery. The National Association of Home Builders said, "By mandating a 20 percent down payment on qualified residential mortgages, (regulators) are excluding those without huge cash reserves, which constitutes most first-time home buyers and many middle-class households."
The NAHB said borrowers who cannot afford a 20 percent down payment and who do not qualify for FHA financing would be required to pay a premium of two percentage points for a loan.
"This would disqualify about five million potential home buyers, resulting in 250,000 fewer home sales and 50,000 fewer homes being built per year," it said.
What are your thoughts? Do you think home buyers should have to put 20 percent down to receive a "qualified residential mortgage?"
The housing industry is criticizing a rule proposed by the Federal Deposit Insurance Corp. that would require homebuyers to make a minimum 20 percent down payment to receive a "qualified residential mortgage."
The rule proposed as Congress continues to work on financial reforms, NAR said the high down payment would burden homebuyers and significantly impede the economic and housing recovery. The National Association of Home Builders said, "By mandating a 20 percent down payment on qualified residential mortgages, (regulators) are excluding those without huge cash reserves, which constitutes most first-time home buyers and many middle-class households."
The NAHB said borrowers who cannot afford a 20 percent down payment and who do not qualify for FHA financing would be required to pay a premium of two percentage points for a loan.
"This would disqualify about five million potential home buyers, resulting in 250,000 fewer home sales and 50,000 fewer homes being built per year," it said.
What are your thoughts? Do you think home buyers should have to put 20 percent down to receive a "qualified residential mortgage?"
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