Tallahassee Real Estate Blog

This week's Wall Street Journal real estate blog outlines some new potential mortgage finance rules that will greatly impact how much of a downpayment buyers must make.  The Federal Deposit Insurance Corporation (FDIC) will consider what constitutes a "safe" low-risk mortgage.  These low-risk mortgages will be exempt from new risk-retention requirements that will add to the cost of a loan. One proposal calls for 20% downpayment, while another calls for 10% plus mortgage insurance.

For homes in Tallahassee, a 20% downpayment would equate to about a $36,000 downpayment for a $180,000 home.  A 10% downpayment in Tallahassee would be $18,000 for that same home.  These rules would likely not take affect until 2012 at the earliest.