No Down Payment Loans Still Exist! Wells Fargo’s “Zero Down” Mortgage
(post by BT) You think no down-payment-loans don’t exist any more? You think with everything going on, banks would have learned their lesson. Wrong! I had a deal about a month ago in which the buyer went to contract with no money down – well, according to Wells Fargo bank, with 20% down. OK, this is what happened… My buyer is purchasing a property and he wants to put down only 5%. His mortgage banker at Wells Fargo had an even better idea. The buyer has another property that they currently own with some (little) equity. So, the bank is giving them 20% down payment from a home equity loan taken out against that other property and the final 80% will be their actual loan on the new home purchase. Creative financing still lives on at Wells Fargo. More proof of things having even more opportunity to get worst, before they get better. I don’t think America has learned its lesson: “If you can’t afford it, don’t buy it”. Having equity in your house or available credit line on your credit card does not mean that you have cash on hand! Do you know that in some countries, like China, the only way to buy is all cash? Yes, all cash, baby, and no credits cards my friends. No average American could survive there.
This is a funny-name blog about Wells Fargo, LOL.