Big Lenders Say No to No Money Down Mortgages
A trend is emerging among large lender companies that will make it more difficult for buyers to purchase a home without putting any money down.
Starting this week, the country’s largest mortgage lender will no longer offer “no down payment” alternatives to borrowers. Countrywide Financial Corp is joining other nationwide lenders that have already done away with 100% financing options.
Now, homeowners are starting to see minimum requirements of 5 percent down with many of these large mortgage lenders which include Washington Mutual and General Electric’s WMC Mortgage.
There has been a recent increase in mortgage lender delinquencies that are thought to be partially due the issuance of too many subprime loans in 2006.