2010-09-05nytimes.com

Have fun being underwater, people (even if your home value only goes down a few %).

Throughout the foreclosure crisis, the state agencies continued to make loans with low down payments, often to borrowers with tarnished credit, with much lower default rates than comparable mortgages from commercial lenders or the Federal Housing Administration. The reason: the agencies did not offer adjustable rates, and they continued to document buyers’ income and assets, which many commercial lenders did not do. In 2009, the agencies’ sources of revenue dried up, and they had to curtail most lending. Then they created Affordable Advantage. The loans are 30-year fixed mortgages, with mandatory homeownership counseling, available to people with credit scores of 680 and above (720 in Massachusetts). The buyers have to put in $1,000 and must live in the homes.


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Comments:

catherine at 17:17 2010-09-04 said:
butts in houses at any cost, sadly butts in houses will be the only thing that matters, no money down, big fee added to the end, AHEM rent to own and

just how much skill does it take to write a 'rent to own' mortgage. And how hard are you going to be on the 'good borrowers' if you are doing 'rent to owns'. the government owns the properties, well most of them now, and anyone qualifies for 'one loan'............how much do you think they are going to pay the people pushing that paper? Permalink

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