Britta Rivera Venture

CHICAGO REAL ESTATE NEWS & MORE

20% DOWN FOR BUYING A HOME, IS THIS THE NEXT WAVE?

REAL ESTATE agents have been asked to push Congress to reject new proposed regulations, considering higher down payments.  The regulation being discussed is a new policy for homeowners, requiring them to put 20% down when purchasing a home.  Many people are already tight on funds due to the recent economic crisis.  But they would be forced to rent or use a hefty amount of savings to buy, if this passes.

It is amazing to think that this is even being discussed by elected officials.  How much more can the housing market take?  Seller’s are already having multiple challenges; lower values and finding a buyer qualified is tough enough.  Now to add to their stress, the buyer would need 20% down?  This would further complicate things in this market making buyers even more hesitant to purchase a home.

Let’s hope this does not become the new wave of the future…or the American Dream may turn into a nightmare.

Below is the email being circualted in the real estate world, read it and you too will be amazed.

Tell Congress: 20% Down Payments Put the American Dream Out
of Reach

Could your clients afford a 20% down payment? Could you? Can you envision
what your prospective client pool will look like if new regulations governing
Qualified Residential Mortgages (QRM) take effect this year?

Neither can we. And neither can many elected officials in Congress
who did not intend for these regulatory provisions to be so narrowly
defined. We must continue our efforts to explain how detrimental the new
QRM rules would be to the ongoing housing and lending crisis in
America.

According to NAR Research, 60% of recent home buyers made less than a 20% down
payment, and it would take 14 years for a typical person to save up a 20% down
payment to buy a median-priced home.

Please contact Congress today and ask them to make it clear to the regulators that this proposed regulation was
not their legislative intent and to instead implement a more reasonable Qualified Residential Mortgage (QRM)                                                             that will keep credit-worthy buyers in the market and able to acquire a loan.


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May 24, 2011 - Posted by | REAL ESTATE NEWS | , , , , , , , , , , , , , ,

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