PENDING LEGISLATION ALERT: Anything less than a 20% Down Payment a thing of the past?

IMPORTANT UPDATE: 20% downpayment requirement on future home purchases may be close. Contact your Congressman now!

This is no time to enact legislation that would hurt the volatile  real estate market and the economy, yet Congress is considering mandating a minimum 20% downpayment for home purchases.

Whenever legislation adversely affecting homeowners is in front of the national legislature, the National Association of REALTORS puts out what they call a "Call to Action". Most of the time, homebuyers and homesellers are even unaware that 1) the legislation is pending, or 2) That REALTORS, as a group,  fight the proposed legislation so it does not affect homeowners and the real estate market.

In this case, the legislation on the table has to do with "QRM", which stands for "Qualified Residential Mortgages".  Some highlights of the proposal in front of Congress right now:

• 20% downpayment requirement on al home purchases.

• 28/36 Mortgage qualifying ratios. (28% of gross income allowable for mortgage, and total debt not to exceed 36% of monthly gross  income)

• Additional credit history requirements, and the instance of just one 30 day late report can severely affect the borrowers ability to obtain a loan.

Connecticut State Representative Jim Himes is among the few Legislators that is circulating a letter to ask Federal Regulators to "follow the intent and language of the QRM exemption provision contained in the Dodd-Frank Wall Street Reform and Consumer Protection Act".

Contact your Legislator now and voice your concerns in writing- give them everything they need to stop this in its tracks before it's too late to do anything about it.  This will affect you whether or not your home is valued at $300,000 or $3,000,000.

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