The freshly revised Qualified Residential Mortgage rule, proposed by a number of federal government agencies on Wednesday, may allow for less obstructive down payment requirements in the future.
If approved the new Qualified Mortgage Rule will allow borrowers to come to the table with a down payment that is less than 20% of the property’s purchase price allowing many qualified buyers that fall in the low to middle income bracket to invest in and purchase a home.
CBS News reported Chris Estes, president and CEO of an affordable housing advocacy group the National Housing Conference, having this to say about the new proposal; “The QRM rule…will allow more American families to become homeowners and ensure that housing markets can remain strong in the future. This is especially important for communities that are still rebuilding from the foreclosure crisis.”
The Federal agencies involved in the proposal are the Federal Reserve Board, the FDIC, the Federal Housing Finance Agency, the Department of Housing and Urban Development, the Office of the Comptroller and Currency and the Securities and Exchange Commission