The end of the 0% down payment (loan, credit card, financing, loan)

[NYSinger]

The end of the 0% down payment - MSN Money

[DwDonhoff]

Liz Pulliam Weston is a well-meaning financial writer... but as with so many other outsider journalists, she's out of touch with the actual industry realities.

There STILL remains zero down financing for buyers, both first-rime homebuyers and experienced homebuyers.

FHA still allows family and non-profit down payment contributions (true non-profit, not the seller-bootlegged down-payment-assistance scams) to zero down (subject to property price qualifications.)

USDA not only allows zero down, but also allows up to an additional 2% ABOVE the property purchase price to be financed for closing costs (subject to property location qualifications.)

FannieMae has the MyCommunity program which also allows for up to 102% financing by starting with a 95% 1st bought by Fannie, and capping it with a "Community Second" for up to 7% of the purchase price (subject to income/debt ratio and credit qualifications.)

Of course, in addition to these institutional programs, savvy sellers (and their advisors) are structuring zero-down private financing more & more as well.

The sky's not falling. There's plenty of ways for people who WANT to become owners to do so.

Cheers,
Dave Donhoff
Leverage Planner

[SmartMoney]

Originally Posted by DwDonhoff

Liz Pulliam Weston is a well-meaning financial writer... but as with so many other outsider journalists, she's out of touch with the actual industry realities.

There STILL remains zero down financing for buyers, both first-rime homebuyers and experienced homebuyers.

FHA still allows family and non-profit down payment contributions (true non-profit, not the seller-bootlegged down-payment-assistance scams) to zero down (subject to property price qualifications.)

USDA not only allows zero down, but also allows up to an additional 2% ABOVE the property purchase price to be financed for closing costs (subject to property location qualifications.)

FannieMae has the MyCommunity program which also allows for up to 102% financing by starting with a 95% 1st bought by Fannie, and capping it with a "Community Second" for up to 7% of the purchase price (subject to income/debt ratio and credit qualifications.)

Of course, in addition to these institutional programs, savvy sellers (and their advisors) are structuring zero-down private financing more & more as well.

The sky's not falling. There's plenty of ways for people who WANT to become owners to do so.

Cheers,
Dave Donhoff
Leverage Planner

Thank you. I could feel the hackles rising on my neck reading that article and really was not looking forward to shooting it down. You were kinder than I would have been.

In many cases the media intending to help, actually causes harm. This is one such article, I fear. The possibility eligible buyers would pass on an opportunity of a lifetime with today's prices saddens not only me, but our economy.

[cdelena]

IMO the risk of loaning 100% on an asset that may well depreciate with no ability to recover beyond that asset is unacceptable business practice. I would not want to invest in that business model and in hindsight many probably see that now.

[texdav]

I woud look for fannie and mac to change as congress is just starting to think about the changes it needs. There is alot more legislation coming on all credit in the next few years. If you watched the congressional hearing just last week there were some very serous changes both democrtas and republicans agreed needed to happen that would tighten who gets a loan by those two agencies in the near future. We are also I think getting ready to see some serious changes in credit card reform laws.

[LLLL98]

Originally Posted by DwDonhoff

Liz Pulliam Weston is a well-meaning financial writer... but as with so many other outsider journalists, she's out of touch with the actual industry realities.

There STILL remains zero down financing for buyers, both first-rime homebuyers and experienced homebuyers.

FHA still allows family and non-profit down payment contributions (true non-profit, not the seller-bootlegged down-payment-assistance scams) to zero down (subject to property price qualifications.)

USDA not only allows zero down, but also allows up to an additional 2% ABOVE the property purchase price to be financed for closing costs (subject to property location qualifications.)

FannieMae has the MyCommunity program which also allows for up to 102% financing by starting with a 95% 1st bought by Fannie, and capping it with a "Community Second" for up to 7% of the purchase price (subject to income/debt ratio and credit qualifications.)

Of course, in addition to these institutional programs, savvy sellers (and their advisors) are structuring zero-down private financing more & more as well.

The sky's not falling. There's plenty of ways for people who WANT to become owners to do so.

Cheers,
Dave Donhoff
Leverage Planner

Yes, I was totally convinced that I would not be able to find financing and that I would have to use my savings as down payment, but after a lot of research I was able to find a bond program that my state offers which contributes towards down payment and closing costs, so I won't have to pay out of pocket. I'm so glad that these programs are still around for people like myself.