Bank of America announces zero down payment loans
Bank of America just announced zero down payment, zero closing cost, and no minimum credit score mortgages for Black and Hispanic first-time homebuyers.
https://www.bloomberg.com/news/articles/2022-08-30/bofa-tests-no-down-payment-mortgages-for-minority-communities
I’m all for giving people opportunities, but isn’t this reminiscent of the kind of policies that lead to the 2008 mortgage collapse? Do we have anything to be worried about here?
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@Nick Sansivero, I'm not a lending expert, but if I had to speculate, there's no shot Bank of America is holding these loans on their books. This has government-backed subsidizing written all over it. No such thing as a free lunch, there are only trade-offs.