Skin in the game
One of the lessons learned from the real estate bubble is that folks that don't have skin in the game are more likely to default their mortgage and throw the keys on the table if their home's value declines dramatically. Especially if you are talking about a second home/condo/investment property. BTW, I am by no means suggesting you would do that.
Banks have been soaked enough by deadbeat borrowers who thought buying a home was a joint venture with the bank where they got 100% of the upside and the bank owned 90% to 100% of the downside. That's why the underwriting standards have shifted so dramatically. Simple as that. And a good thing if you think restoring the health of our banks is pretty fundamental to overall economic recovery.
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