The Wall Street Journal reports:
Bank of America Corp. is rolling out a new-mortgage product that would allow borrowers to make down payments of as little as 3%...the new loans are backed in a partnership with mortgage-finance giant Freddie Mac and the Self-Help Ventures Fund, a Durham, N.C.-based nonprofit....To get the loans under Bank of America's new program, borrowers must have a credit score of at least 660, which is higher than FHA's requirement, and an income that is less than the area's median.
I hope that works out well for everyone involved, but in the event of a recession that leaves those borrowers jobless or a real estate downturn that leaves the houses worth less than the mortgages, it will not be pretty.
