10% or 20% Mortgage Down-payment? Or Neither?


At a median sales price of $330,000 for Chapel Hill Real Estate, and $171,000 for Durham, NC homes, federal agencies are proposing homebuyers pay a set 10% ($33,000 or 17,100) or 20% ($66,000 or $34,200) down-payment when purchasing real estate.

The proposal for these possible NEW down-payment requirements comes as part of the Dodd-Frank Law, which is trying to set standards for reasonably safe mortgages.

The National Association of Realtors, and Realtor Mag recently posted these figures for average work salaries:

▪ U.S. Army Staff Sergeant: 16 years (median salary: $30,176)
▪ Public school teacher: Nearly 15 years (median salary: $33,530)
▪ Firefighter: 10 years (median salary: $47,730)
▪ Police officer: Nearly 9 years (median salary: $55,620)

These figures should give you a good idea of what these down-payment requirements could mean to average Americans.  The Center for Responsible Lending stated that they think the market should set down-payments, based on the borrower’s credit history, income and debt levels.

Do you think down-payments should be set based on credit history, and income, or set at a specific percentage controlled by federal agencies?  What’s your opinion?