Despite signs that the housing market will continue to grow, rising land and construction costs have made the development of affordable housing increasingly challenging. To cater to the demand for affordable housing, the U.S. Department of Housing and Urban Development (HUD) has made it easier for property developers to access funds used by lenders underwriting Federal Housing Administration (FHA) deals.
File this question under "it depends." It's true that loans with down payments of 20 percent or more cost borrowers less over time than low down payment loans. Low down payments leave larger principals to pay off, and those principals create more interest over time. Low down payment loans also require mortgage insurance. However, a low down payment itself can actually boost affordability by getting you off the sidelines and into a home of your own sooner.
According to a new survey of mayors from 115 US cities, more than half of mayors say that high housing costs are the main reason residents are moving out of their cities. Many worry about the price of housing, and only 13 percent say they believe their city's housing stock meets residents' needs.