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Homebuyers down payment minimum

Has anyone else heard the uproar about this new federal law being discussed?

Link to a site against it, which I did look into.  Seems crazy high to have a minimum of 20%, that would be difficult for most people to save for and I wouldn't have been able to buy my house at the time if that was the requirement. 

I hope it doesn't pass!   This also means if you want to sell your home, a 20% down payment would be required for buyers and you might have less qualifiers. 


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Re: Homebuyers down payment minimum

  • If that passes, I will never be able to own a home.  I have no debt, excellent credit, and I'm very responsible, but this will make it impossible for me to ever have enough money in a lump sum to get a loan.  It seems pretty unfair.
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  • They're definitely overcompensating for the shiit that went on pre-crash (0% down, no documentation, subprime loans).  I don't think 20% is necessarily too high, but it should be up to each bank to make financing decisions on a case by case basis.
  • We'd have had to wait another 1.5-2 years.

    I think for most people it just wouldn't be possible.

    We actually needed to buy a house to start saving money - renting can be so insanely expensive!

  • yeah, everyone I know is against it, too.   There's a way to send them a letter on that link agreeing to squash it, but I'm never really sure how seriously those online petitions/email chains really get. 


    This would frustrate a LOT of home buyers, and not only the younger folks would have trouble, it would affect everyone.

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  • Right now we are building a home and unless we went with FHA or qualified for Military loans, the minimum was 20% down for any funding.  We are doing FHA which has a min. of 3.5% even though we are putting more than that down, 20% would not have been feasible for at least a few years.  If they change it to all loans requiring that, it is going to screw the housing market even more than it already is.
  • We actually talked to a financial advisor in our area who told us that they don't even recommend putting down 20% because in a HCOL area it's not a smart financial move.

    For instance, someone I know recently emptied their 401k to use it as a down payment. Now, they're 30 years old and owe themselves money and have to start a retirement fund all over again. Not great. And this is a person who makes a very good living, has good credit, and is responsible with his cash.

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  • Ugh this turns my stomach.  We didn't have 20% for either house, but we put more than the required 3.5% down.  Honestly, we're seriously considering never buying again (or at least not for a long time), but now I'm terrified about selling the house we have.
    Damn you Nest for screwing up my siggy!

    .: Diary of a Recovering Runner :.

  • Hmm. There seems to be some conflicting info out there about this. I'm reading some stuff that suggests that the NAR is kind of twisting things out of context, and the law isn't nearly as harsh as all that. Here's one example"

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