How long does it take to save for a down payment?

How much cash a homebuyer should have for a down payment is a hot topic among policymakers.

Some federal regulators and lawmakers have called for higher down payments in order for mortgages to be considered a “qualified residential mortgage” (QRM) and not subjected to extra fees.

The Center for Responsible Lending has argued that 10 percent or 20 percent down payment requirements are too high. The organization has a chart on its website showing the length of time it would take borrowers of different occupations to save enough for a 10 percent down payment on a 2010 median-priced $172,900 home.

• U.S. Army Staff Sergeant: 16 years (median salary: $30,176)
• Public school teacher: Nearly 15 years (median salary: $33,530)
• Firefighter: 10 years (median salary: $47,730)
• Police officer: Nearly 9 years (median salary: $55,620)

“We’re not advocating for zero percent down,” Kathleen Day, spokesperson for the Center for Responsible Lending, told The New York Times. “We think down payments are good. But we think the market should set them, based on the underwriting.”

The down payment proposal comes as part of new rules for mortgage lenders in the Dodd-Frank Financial Reform Bill. Federal agencies are trying to set criteria for what should be considered a reasonably safe mortgage or QRM. Lenders issuing a QRM will be able to sell the loan to an investor and avoid retaining any of the risk.

However, lenders will consider non-QRMs more risky since the lender will be required to retain a 5 percent ownership. (Loans insured by the Federal Housing Agency would be exempt.) Under present proposals, borrowers who are unable to meet QRM guidelines would have to pay more for their loans.