There has been a lot of discussion up on Capitol Hill regarding down payments for mortgages. The feds with the support of lenders are contemplating the idea of regulating the down payment to residential purchase loans in response to the mortgage crisis. The new regulation would require all residential buyers to put down a minimum of 20% on all residential purchase loans.

I don't see this as a good idea for the economy and the real estate market. In Waltham, it isn't out of the norm to have a home buyer put down as little as 3% on a home purchase loan, even in this market. Its how the middle class people are buying homes. The qualification process is much tighter now, and lenders and banks are taking great care to make sure today's buyers can actually afford the home.

Taking away the ability for buyers to put down less than 20% will only crush this very fragile market. I believe it will destroy home values and take away jobs. The middle class are the primary borrowers who seek loans with minimal down payments. Taking away these types of loans will take away the basic American dream for many people. Buying a home today is already difficult. For the most part, it requires dual incomes, good credit and solid employment history. With the cost of living constantly on the rise, saving money is a challenge.

The math is simple, for a $350,000 purchase, (This is less than the average sale price in Waltham) a 20% deposit would be $70,000! I read it would take the average American family over 15 yeas to save up a 20% down payment to purchase a home.

It's my opinion that there are no winners with this sort of regulation and I don't think it protects anyone. Home values would plummet, affecting everything including real estate tax, which are the revenues for local towns and city's. Home ownership shouldn't be this hard to obtain.