Thousands line up for zero-down-payment, subprime mortgages
- Borrowers can have low credit scores, but have to go through an education session about the program and submit all necessary documents, from income statements to phone bills.
- They must go through counseling to understand their monthly budget and ensure they can afford the mortgage payment.
- The loans are 15- or 30-year fixed with interest rates below market, about 4.5 percent.
…Critics of the program argue that with no down payment, no skin in the game, these borrowers have no reason not to walk away should their homes lose value. That’s what happened during the financial crisis…
For everyone reading this: DON’T GET CAUGHT UP IN THIS. DON’T BE A MORON!