10/27/2008

Duh krash, part whatever, I Steve posts this:

(Regarding zero down payment RE loans)In the last three years of the Clinton Administration, it was only about 7%. In 2002, Bush started making speeches denouncing down payments as the primary barrier to minority home ownership. By 2003, 20% were getting their first house with zero money down. By 2006 it was 41%. Think about the quality of debtor who was left to buy his first home in 2006 with no money down after two years in which one-third of all home purchases were no money down. Does the term "scraping the bottom of the barrel" come to mind?
The entire post with pictures and graph is at the main site HERE

1 comment:

Xiaoding said...

No, because I bought my house no money down. There are other factors to consider.

"No money down" loans have always been around, for first time home owners. Mine was a deal run by North Carolina. No down, no mortgage insurance.

But, these deals were perverted, used by those who had no right to.

Bear in mind, in 2006, house prices were in full bubble mode. Save a 20% down on a $400,000 house? Are you insane? So easy credit, in such an enviornment, is the only way most people could even buy a home. Cut off the credit? That would be suicide. In 2006.