Mortgages with no money down are back

Last week, the Wall Street Journal reported that the subprime mortgage bond market is on its way to a revival, and now it appears that another culprit of the housing crisis is also staging a comeback. According to a new story by Sarah Ryley of the Daily (and formerly of The Real Deal), Americans are once again being given the opportunity to buy homes with no money down. In the Fox Business segment above, Ryley discusses with anchor Brian Sullivan, who moderates The Real Deal’s annual forum, how local and state housing finance authorities have recently ramped up their second mortgage lending programs to provide borrowers with 3 to 5 percent of the loan value. For homebuyers who are already getting 95 percent of their purchase price insured by the FHA, that means borrowing for as much as 101 percent of the cost of the house.