A little less than six months ago you could finance a home with no money down with few problems. Even if you had marginal credit, no assets, and a relatively soft employment history.
These days you’ll spend a lot of time shopping for 100% financing even if your the most well-qualified borrower out there. You may even fail to find one bank or lender willing to offer you financing without a down payment.
The reason is because many of the banks and mortgage lenders offering 100% financing were losing money when homeowner after homeowner failed to make the first payment, leaving the bank with the keys and a vacant property.
It seems many homeowners were willing to buy properties with zero down in the hopes of turning a quick profit, but as home prices slid, borrowers simply walked away with little more than a credit ding.
While it may not be as easy to qualify as its predecessor, it should stick around a bit longer with protections in place for the banks and lenders offering it.