Our Policymakers in Washington are now thinking that the down payment should be 10%-20%. These are the same folks that thought everyone should be a homeowner regardless of their credit history and without anything down. Perhaps that is how we got in such a mess. The Center for Responsible Lending says that a 10% down payment on median –priced $172,900 home would take some professions a long time to save the down payment.
US Army Staff Sergeant: 16 years (median salary $30,176)
Public School Teacher: 15 years (median salary $33,530)
Firefighter: 10 years (median salary $47,730)
Police Officer: 9 years (median salary $55,620)
If they go with the 20% down their children will be grown before they can buy a home. I long for the day when you could go to your local bank and you could borrow on your good name. Where the banker knew you and your family and could make a decision with out sending the application to corporate headquarters. Oh well I guess it is ok to dream.