Banking regulators are proposing the requirement of a minimum 20% down payment of the sales price for a home loan. Proponents hope that the change will prevent another
housing crisis because loans with a 20% down payment are classified as lower-risk.
Opponents of the proposal argue that the restriction could lower home values, and affect creditworthy American’s ability to buy a home. Additionally, the number of first time home purchases could be reduced significantly because few buyers can save over $50,000 to buy a $250,000 average, low priced home.
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