Some zero-money down mortgage programs still exist
10/11/2010
By Credit.com Staff
When individuals or families make the decision to purchase a home, most start saving money for a down payment. But the current economy has made it difficult for many consumers to put money away, making it harder for them to secure mortgage loans. Efforts to boost the real estate market and make homeownership more affordable have led to the creation of many state programs, some of which require no down payments on new homes.
For example, the state-sponsored MassHousing program only requires prospective homeowners to put down as little as $1,000 to secure a mortgage loan, according to the Boston Globe. Most zero- to little-money down initiatives are frowned upon by the mortgage industry, for fear that they may result in more foreclosures. But program leaders say such programs are instrumental in helping consumers achieve homeownership while pouring more funds into economic recovery.
"There is a path for low- and no-down-payment lending if you do it the right way," MassHousing executive director Thomas Gleason told the Globe.
Consumers interested in purchasing a home should explore all of their options and available programs before agreeing to a loan.
