No Money Down Mortgages Stage a Comeback
Two credit unions, NASA Federal Credit Union and Navy Federal Credit Union, are offering members mortgages without requiring any down payment or mortgage insurance.
No money down mortgages were among the types of housing finance loans blamed for causing the housing finance crisis in 2007. Such mortgages would seem to run counter to the prevailing trend in housing finance regulation, which seeks to make sure participants in all parts of the lending process have a stake in the loan.
But if a member had the financial wherewithal to be able to easily repay the loan, why would they necessarily want a no money down mortgage?
White explained that some members were financially able to make mortgage payments but were not interested in tying down liquid assets in housing finance.