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The Real Deal Miami

Lenders want more cash up front

February 16, 2011 03:13PM

Banks are continuing to step up their down payment requirements for prospective homebuyers, which could mean fewer Americans will be able to become homeowners in the coming years. In the video above, the Wall Street Journal examines a push by the Obama administration last week to increase minimum down payments to 10 percent for mortgages guaranteed by Fannie Mae and Freddie Mac. Meanwhile, private lenders are already requiring more cash up front in an effort to reduce the likelihood of delinquencies later on. Last year, the median down payment in nine U.S. cities for properties purchased with conventional mortgages was 22 percent — triple what it was three years earlier.