3% is not theoretical, it has been available.
With FHA it comes with mortgage insurance for 30 years if one is unable to refinance out of it. Ok for people with crappy credit.
Conventional 3% down is available for people with better credit and mortgage insurance goes away at some point.
1% down is nuts. Even at a 4% rate, payments will be much lower than they were 10 years with no money down loans at 6%+
Most people only care about their monthly payment.
Will be interesting to see if this program stays around long OR if other lenders jump in.
The crazy thing is that it can be easier for some borrowers with crappy credit to get a purchase loan with 3% down
than it could be for someone with 800+ credit and 50% down.
The system is broken. It’s difficult to understand.
IMO anyone who has been within 1000 miles of Afghanistan or Iraq deserves to be able to buy a house in America with no money down.
