REALTORS fighting for affordable, accessible mortgages

The future of the Real Estate market in every local marketplace including northern New Jersey is at stake. Realtors Some of these proposed changes would raise the minimum down payment for FHA-insured mortgages to 5 percent, as well as allow FHA loan limits to revert to 115 percent of a county's median home price. Realtors believe changes should not be made at consumers' expense by reducing the availability and increasing the cost of mortgage capital, especially when the market is still recovering. According to the National Association of Realtors, one-third of recent buyers purchased their homes with an FHA-insured mortgage. Now there's a climate that makes attaining a home more and more difficult even for those who possess a very good financial track record. These candidates should have access to home ownership and all the financial benefits that accompany ownership; we want to keep that door open. Realtors oppose any increases to the down payment requirements, which would put home ownership out of reach for many families. The principal barrier to home ownership is accumulating the money needed for the down payment and closing costs. Increased down payments will make it difficult for both first-time and repeat buyers. Current limits range from $271,050 to $729,750 based on 125 percent of the local area median home price. We've all seen that Wall Street can flourish while Main Street fails and deteriorates but when the real estate market flourishes the irrefutable positive ripple effect for the economy benefits everyone – it's vital. But if the current loan limits are reduced it would restrict availability of mortgage loans all over the country, as well as increase cost of capital to consumers," Van Savage said. It is imperative that we maintain the current down payment requirements and loan limits to safeguard home ownership," said Van Savage. Reader Comments (0)NorthJersey's comments section is governed by our Terms of Service and Privacy PolicyPlease report comments that violate the terms of service.