No down payment is usually required at all and there are no monthly premiums.
Since they had no down payment money and poor credit scores, normal mortgage standards had to be waived.
FORBES: Financial Crisis: Clinton Rooted, Bush Fed, Obama Watered
In addition, they had some help from the military in the form of a Veteran Affairs "no-no loan" no down payment, no closing costs.
It is not hard to sell a house to a poor person if he needs no down payment and if the initial terms are tailored to what he can afford.
FORBES: Financial Crisis: Clinton Rooted, Bush Fed, Obama Watered
The award-winning Police Homeowner Loan Program offers police officers low-interest (4%), short-term (20 year) financing with no down payment for the purchase of rehabilitated houses in low-income, inner-city neighborhoods in Columbia.
Of course, this type of policymaking underscores the importance of making the default choice a good one (an adjustable-rate mortgage with no down payment would be an example of a bad default).
It cannot just be assumed that most people who during the housing boom bought homes with adjustable-rate mortgages, or mortgages with prepayment penalties, or mortgages that required a low or even no down payment, were fools or victims of fraud.
Layering of risk means the borrowers courted by these lenders had multiple characteristics that would put them at high risk for default, including no down payment, no documentation of income or assets, low credit scores and second mortgage in lieu of a down payment.
In 1991, he arranged for police officers to be offered a loan at a modest 4% interest rate, and with no down-payment, when they move into a home within the city.
On Friday, General Electric 's WMC Mortgage, the fifth-largest subprime lender, said it was putting a halt to no-down-payment loans, or loans to borrowers with credit scores below 600.
On Friday, General Electric 's (nyse: GE - news - people ) WMC Mortgage, the fifth-largest subprime lender, said it was putting a halt to no-down-payment loans, or loans to borrowers with credit scores below 600.
This week's German plan to set up several bad banks was no more than a down payment on the restructuring ahead.
Thus, even if the homeowner is able to sell their current house, there may be no profit available to satisfy the down-payment on the next home.
FORBES: Down Payment on Home Out of Reach for Half of U.S., Poll Finds
That Europe will kick the solution of the Greek debt crisis down the road again, with another temporary bailout payment, has no connection whatever to slowing global economies and rising inflation.
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