This MIGHT Be A GAME CHANGER: BOA Offering Coli Brehs Mortgages With ZERO DOWN!!!

[Arris]

What's the catch?

smells like predatory loans...

 

[Silver Surfer]

With zero down you’re more likely to be underwater faster with interest rate increases.

Not to mention the amount of interest you’ll be paying over the term.

First time buyer programs don't call for a large down payment anyway...as long as they are not raped on the interest rate....why not

 

[Bubba T]

First time buyer programs don't call for a large down payment anyway...as long as they are not raped on the interest rate....why not

My first year as an auditor I worked on a non-profit that helped people with mortgages not too dissimilar to what the article is describing. The interest rates were 9-14% at a time where rates were as low as 3%.

There’s no way a place like BOA or Wells Fargo is going to be offering this type of loan without jacking up the interest rate, which unsurpisingly wasn’t mentioned anywhere in this article.

 

[ItsPeople]

First time buyer programs don't call for a large down payment anyway...as long as they are not raped on the interest rate....why not

 

[Pseudonym]

Seems too good to be true.
Just put down your 20% if you can.

 

[Booker Carver]

With zero down you’re more likely to be underwater faster with interest rate increases.

Not to mention the amount of interest you’ll be paying over the term.

Zero Down just means you're going to fall behind on payments and go into foreclosure faster because your mortgage and PMI is several hundred dollars higher every month.

Nobody wants to hear that though

Veteran loans are 100% financing and they are the least likely to default. Mainly because of the residual income test.

It appears to be some form of redlining because borrowers are restricted to a certain area within those cities. There are many down payment assistance programs where you are restricted to certain “target areas”. I read in USA Today that they don’t have to be black or Latino to qualify, they just have to live in a 50% AA or Latino census tract.

I can’t imagine that rate will be pretty. But the govt is probably incentivizing them somehow.

Will some people default, maybe, but it will probably help more people than it will hurt; and you won’t hear about that.

 

[coldcall]

As long as you meet the income / credit requirements and it's not an adjustable rate mortgage, I don't see how this could be bad.

 

[UberEatsDriver]

What's the catch?

Exactly because even FHA loans have a catch lol.

I’d never buy a house without putting a Downpayment and wasn’t there a time when buying a house was easy and that sh*t went down when we had our recession back in 08 or something lol

 

[Booker Carver]

Seems to good to be true.
Just put down your 20% if you can.

There’s not always a need to put down that much. You can put down as low as 3% on conventional loans, 3.5% on fha loans. 3% loans like Home ready/ Home possible usually have a better rate within the same credit scores. It’s the PMI that costs, but that could be bought out. A lender should be able to walk you through your best options, not only with down payment but your whole financial picture.

 

[Nagarjuna]

Select neighborhoods huh

 

[UberEatsDriver]

Sounds very similar to what caused the 2008 crash…

Lots of people are irrational spenders so the 08 crash is probably forgotten by them

 

[Piff Perkins]

Sketch. Collateral is a must for any loan/business transaction and this type of shyt caused the last crash in 2008.

...no, it didn't.

 

[Swirv]

surprised at no PMI. If they don’t sneak any other fees in there, and rates are relatively reasonable, could be a good initiative

PMI is just replaced with a second loan. BOA already funds the NACA program.

 

[UberEatsDriver]

There’s not always a need to put down that much. You can put down as low as 3% on conventional loans, 3.5% on fha loans. 3% loans like Home ready/ Home possible usually have a better rate within the same credit scores. It’s the PMI that costs, but that could be bought out. A lender should be able to walk you through your best options, not only with down payment but your whole financial picture.

You have to pay PMI and also a higher monthly mortgage amount.

I’ve seen the comparison of mortgage rates at open houses before and 20% down conventional loan has better results to me.

Btw 20% down is not a lot. Either you can’t truly afford that house or you just suck as saving money.

We all know the greedy banks are more than willing to give you a house that you truly can’t afford

 

[Ezekiel 25:17]

If y’all doing any sort of business with BOA or Wells Fargo you deserve what happens to you

They got worse company in America back to back. Even over EA

Beside 0 down means a bigger mortgage. I'm always gone strive for 20% unless the house cheap