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0% down, 0 closing costs sounds good at first glance but you're really wrapping a noose around your wallet's neck. Because if you're buying a $500,000 house with 0% down which means you have ZERO equity.Even if you could qualify for this program it sounds like a bad buy. If they really want to help they need to give grants to Black Americans. Give us a grant for 20% on a house in a particular tract or up to a particular value like median house in a given area.I think this may be a means to get people into the homes they will be foreclosing on in the near future. They foreclose on it, give a loan to a person who typically wouldn't qualify, group it up into a tranche, and sell it off to institutional investors. 'Or if they don't off-load the loans they will use the monthly payments as bridge liquidity, foreclose at a later date, and sell the house again. Similar to the contract loans they used to give in the 50's when the FHA said "No loans to Blacks".
0% down, 0 closing costs sounds good at first glance but you're really wrapping a noose around your wallet's neck. Because if you're buying a $500,000 house with 0% down which means you have ZERO equity.
Even if you could qualify for this program it sounds like a bad buy. If they really want to help they need to give grants to Black Americans. Give us a grant for 20% on a house in a particular tract or up to a particular value like median house in a given area.
I think this may be a means to get people into the homes they will be foreclosing on in the near future. They foreclose on it, give a loan to a person who typically wouldn't qualify, group it up into a tranche, and sell it off to institutional investors. '
Or if they don't off-load the loans they will use the monthly payments as bridge liquidity, foreclose at a later date, and sell the house again. Similar to the contract loans they used to give in the 50's when the FHA said "No loans to Blacks".
