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Zero-down home loans are back. Be very leery. – zero-down mortgages were widely used to assist aspiring homeowners to join the growing homeownership club. buyers with no cash, bad credit and unstable employment were able to purchase a home – in.
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No doc mortgages used were highly popular before the mortgage crisis, and some lenders may be creeping slowly back into that crazy market. But are the loans the same?
Tons of mortgages leading up to the crisis were no documentation loans, and as long as the borrower had semi-decent credit, they could generally qualify for a loan, even a jumbo loan! Yikes. While I don’t know the exact number, I wouldn’t be surprised if no-doc loans held a majority for some time in 2005-2008.
Maxine Waters Promises More Big Government in Her Financial Services Agenda – She said that “abusive institutions” had been “peddling toxic products like no-doc loans, interest-only mortgages, and other predatory products.” No government agency, Waters said in her remarks Jan..