I have no idea where this 20% down thing is coming from. I’ve worked in the mortgage industry for the last decade and a person can get a conventional Fannie/Freddie loan with only 3% down. Sure you can put 20% down to avoid PMI but that’s most certainly not necessary to buy a home.
The biggest problem with getting mortgages done for people are the credit score restrictions which the banks have placed into effect that have nothing to do with the Dodd/Frank act. FHA, for example, let’s people go down to a 580 score but it is the individual banks, in an effort to protect themselves from fallout, that have chosen to raise that limit to 640 for people putting the minimum amount down on a purchase. This cuts off more than a third of the US population from getting a mortgage. The Republican’s are placing their ire in the wrong direction but I can’t say that I find this too surprising that they haven’t taken the time to do their research. If more Republicans actually did some homework on the issues that they say are their hot buttons they probably wouldn’t be Republicans anymore (well, maybe not because that would require them having to admit they were previously wrong or made a mistake which isn’t exactly their MO either).
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