[quote=esmith]
I am not very familiar with the 80s and 90s. But FHA has been around since the 30s and 3% downpayments on FHA loans may have existed for a very long time.
I’m also not sure about 20% being the norm. The oldest data point I could find is that the median first-time-buyer downpayment in 1997 in SoCal was around $10,000. Median home price was in high 100’s.
The story of 20% and 3x being the norm is probably a myth. In coastal California, anyway, (in my opinion) prices have not been so low and down payments have not been so large for many decades.[/quote]
I know some people who bought their first house in the 80s. They tell me back then, it was very hard to find a loan if you put down less than 20% and it was nearly impossible to get a loan if you put down less than 10%. That’s what they told me of their experience back then, so I tend to believe them since they were on the borrowing side of the equation. They could be wrong and you didn’t need more than 3% down, but I wouldn’t know for sure, since I don’t have a time machine. What we can talk about is what to do now. Your argument is to not require 20% down because it’s hard. My argument is, it’s doable if you put your mind to it. Why are you so against asking people to put more skin in the game?
