The Real Deal Miami

100 percent mortgages not dead yet 

June 24, 2008 10:11AM

Although many critics blame little-to-no money down mortgages for hastening
the credit crunch, government-backed programs are making these options more
popular and viable. Down-payment assistance programs run by nonprofits can
provide the 3 percent down payment needed to qualify for a mortgage backed by
the Federal Housing Administration. These nonprofits are often funded by
sellers and homebuilders, such as D.R. Horton Inc., which advertises “100
percent financing” for certain condos. The FHA, however, is looking to
shut down these programs, saying that seller-assisted down-payment programs are
hurting the agency.