The big banks are now making it easier to scrape that down payment together. Just a few months after Bank of America announced a 3% down payment program, Wells Fargo and Chase are doing the same.
Are low-money down loans risky?
Some people think so, but normally people don't walk away from their mortgages because they put zero down, 3% down or even 20% down. They walk because they can't make the payment - usually because they face some kind of crisis like job loss, divorce or illness.
Plus, mortgage payments in most of the U.S. are far lower than rents, so there would be no incentive to lose the property - especially with home prices on the rise.
How will this affect investors? It might be easier to flip properties to first time homebuyers in certain markets.
Get the full transcript at: www.NewsforInvestors.com
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