Looks like the low down payment loans are going up again. Supposedly this time it is different because there are no 'no interest' etc. funny loans and better credit is necessary.
See quote below - very much do not agree with that. If you buy a $1mil house with 30k down and there is a recession and you lose your job half a year later, you still will be handing back the keys, even if you have good credit. If 1/3 of all home buyers did that over the previous months and years, they will do the same ...
Q1 2015 U.S. Home Purchase Down Payment Report | Newsroom and Media Center
Quote:
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“The growing number of low down payment loans reflects an appetite on the part of lenders and the government to provide a format to grow the number of homebuyers, particularly first time buyers. Those numbers were running near record lows over the past couple of years,” said Craig King, COO at Chase International brokerage, covering the Lake Tahoe and Reno, Nevada housing markets. “The dangers of interest only, negative amortization, and low, low credit score loans are not a part of today’s low down loan programs. These are the components that got buyers in trouble during the severe downturn. Without those types of high risk components, low down payment loans are a sound strategy.”
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I really wonder WTF is up with this. It hasn't been even 10 years before the last time we had a big mess...
G