Stop the 20% Down Payment Requirement.
A new and costly rule called Qualified Residential Mortgage, is being considered right now by federal regulators. If the proposal goes through, it will require homebuyers to make at least a 20% down payment on a home purchase. The federal regulators have taken a new law passed by Congress intended for banks to do a better job of securing loans and instead are trying to turn the rule into a penalty on homebuyers.
Forget the idea of a 10% down payment or even a negotiated amount. It’s a fact: many hard-working, credit worthy Americans have a difficult time saving for the down payment to buy a home. If enacted, the new federal regulation will make it even more difficult for many Americans to buy their next or first home. Suppose you wish to purchase a $200,000 home. The proposed 20% down payment means you will need at least $40,000 upfront to satisfy Uncle Sam’s requirement. Similarly, in high cost areas, on a $500,000 home purchase, you’ll be required to put up at least $100,000.
Take Action Now: Regulators in Washington need to hear the voices of home owners as they make their policy considerations. This is why your input is so important. Please send a letter to the U.S. Dept. of Housing and Urban Development (HUD) to ask that they drop the proposed 20% down payment requirement. Taking action is easy and takes just a few seconds of your time. We have already drafted the letter for you and you can add your own comments as well.
www.homeowneractioncenter.com
