So wouldn't that slow down the market?It might force people to extend their amortization period to 35 years.
Uninsured mortgages are the best kind, with 20% down it shows the buyer has some sort of saving ethics.
As for this slowing the market down, if I want to buy something for $700,000 and I have $140,000 in downpayment. Am I just going to walk away with my hands in my pocket because I don’t qualify? I would just lower my standards and buy something cheaper.
Its not like they are raising the minimum down from 5% to 10% which would prevent a certain group from buying anything period.