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What would happen to Real Estate & The Economy if 30% Down Payment came about?

Posted on Oct 21, 2013 by in Active Rain | 0 comments


What would happen to the Real Estate Market , The Economy and Home Ownership if 30% Down Payment became a reality?


I am asking this question because I happened to read the Los Angeles Times today and I am enclosing the article here for you to read as well. I almost fell out of my chair… If you are too busy and just want the reader’s digest version then let me summarize it here.


Currently there are six Federal Agencies who are looking at a proposal that will eliminate a huge number of buyers from buying a home. Mandatory 30% down payment for borrowers who seek the best rates and terms are being proposed. Now let’s be clear the converse will be if you are unable to put 30% down then you will not get the best rates.


The name of the proposal is called “QRM-Plus”:


·        30% down payment or more for the purchaser,


·         Tougher credit standards for borrowers,


·       A ban against second loans.


So who are these agencies? Let me list them here:


1.      The Federal Reserve,


2.      The Federal Deposit Insurance Corp. (FDIC),


3.      The Federal Housing Finance Agency


4.      The Department of Housing and Urban Development (HUD)


5.      Office of the Comptroller


6.     The Securities and Exchange Commission


Can you imagine what the ramifications and results would be if this manages to get approved? Need I say that would stop the home sales in its tracks and needless to say it would really hurt the economy of this nation?


I would like to ask each and every Realtor, Agent anyone who cares what could happen, CONTACT YOUR LOCAL REPRESENTATIVE!  If you are a potential seller or a potential buyer please contact your local representative as well. This will affect more than just the Real Estate Industry!! This would affect all socio economic groups and all price points in the United States.


IF you would like to read the article here it is for your convenience:,0,6931943.story


JUST to make Clear the deadline for our input to Congress is OCTOBER 30th, 2013!!!!


If you are considering buying or selling a luxury home, or an ultra luxury home, or luxury investment real estate, or luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 or email me at or visit one of my websites at        I am a Pet Friendly Realtor and I contribute a portion of my commissions to local animal rescue organizations.








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