Stricter Down Payment Proposal Could Deter Homebuyers

20 percent down payment
20 percent down payment

Among the most hotly contested ideas that bank regulators have proposed to reduce the risk of another financial crisis is a rule making a 20 percent down payment mandatory on some new home loans. Consumer advocates, civil rights groups and lending industry groups alike have said that such a rule would deter many families from ever buying a home.

A new survey by the National Foundation for Credit Counseling could shed light on the actual effects of the proposal: The survey found that half of the 1,000 people contacted thought that they would never be able to put together a 20 percent down payment to buy a home.