Tuesday, October 12, 2010

No Money Down Returns


Exotic mortgages from shifty mortgage lenders hailing "no money down" was one of the culprits of the housing bubble, allowing people who did not have good financial statements creep into the market and fuel what would become the foreclosure nightmare.

Yet no money down mortgages do have their place. In instances, there are renters who make enough to own a house, but simply lack the wherewithal to be able to accumulate a large enough down payment to get into a home. With home prices much higher in urban areas than in the past, it is often now the case that down payments come from family members, or friends. But those without are stuck.

Fannie Mae is now introducing a new program that cautiously allows people to get into homes with no or very little money down mortgages. This makes home ownership within reach for many that wouldn't otherwise be able to own.

While the program is not yet available in New York, it is worth keeping an eye out for.

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