Interesting 0 down 100% LTV loan.....

Hi,

I just browse the zillow.com and check the current mortgage rate, so it seems that people is still able to get a 0 down, 100% LTV loan at relative good rate (~5.8%) even with high risk credit rating:

http://www.zillow.com/mortgage/LoanRequ ... hrt2_1vfag

The interesting part is, the annual income is $55000 but the best quote require a monthly payment of $2579, isn't that exceed 50% of that person monthly income before tax already? How is it possible for that person to make the payment, I guess people still need to pay tax, gas, food, etc.... right :?:

Aeris

Comments

  • Wow. 100% ltv, only $2,500 in the bank besides retirement fund, high risk credit history, bankruptcy in the last 7 years and they'll give the borrower a loan that takes more than half their pre-tax income. Another argument against those that say that the credit crunch must be close to over because lending has returned to normal.
  • That sounds like bait and switch.

    No way that dude gets 6%... or even 0-down.
  • biliruben wrote:
    That sounds like bait and switch.

    No way that dude gets 6%... or even 0-down.


    I agree.

    Although, I have a feeling that with the FED taking sacks of dung as collateral for Treasuries we're going to see another wave of desperate financial institutions throwing Hail Marys. Not to the same degree that we saw in late 2006, but a few will pop up.
  • Those are AAA rated sacks of dung though.
  • There is no 100% LTV Loans. there is 90/10 80/20 and so on.

    And PMI loans, as well as the good old downpayment "Gift" programs.

    That quote on the website is a great bait and switch. Once you get into the actual lenders underwriters there will be a call to the matter of "The underwriting standards for these loans changed today, we need to restate the interest rate, money down, bla bla blah".
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