GWV5903
Gold Member
I provided the link, you merely pontificated.
Stick to something you can back up!
I have done it for a living for over 23 years...
The program the NYT article refers to was not a popular product when at the time you could get a Zero Down FHA DPA loan at basically the same rate...
Nehemiah was the primary Non Profit at the time where the down payment and closing cost came from the seller via rolling it into the price, a nice little loop hole Clinton devised in late '96 and rolled it out in early '97. He revised CRA to help accommodate this product...
In essence the borrower was out anywhere from as little as $150 to as much as $800...
Not a bad risk for the buyer...
The lowest score I saw under FHA DPA was a 517 FICO that closed for about a $650 total investment on a 20 Year FHA DPA loan...
Today the hot loan for less than stellar financials is USDA, Zero Down, low MI and income caps are very liberal...
The Sub Prime market started as a 20% to 30% down payment with usually a 4% bump above par. Down the road Sub Prime was transformed into Zero Down, no MI, no escrows that you could easily get done with a 560 to 580 FICO...
If you don't believe me I could care less, take it or leave it Ed...
Back to PAPER Approval reality...
As of 2006 through September 2008, janitor earning 20K/year gets a call from a Mortgage Broker telling said janitor that he has been approved for a 30 year, 6.5%, 600K Loan.
And please don't respond with a fairy tale that this wasn't happening by the hundreds of thousands.
It wasn't and that is no fairy tale...
Look it up, the internet is free and you will not find anything factual that supports those numbers on the scale you propose...
Loans like this did take place, but not in to hundreds of thousands as you claim...
The facts do not support it...
Good hyperbole though...