In San Francisco, began to sell homes on credit without a down payment

In San Francisco, Federal Credit Union this week unveiled a lending program that will allow Bay Area buyers to purchase homes with no down payment and no mortgage insurance. One limitation is implied - the value of the property should not exceed two million dollars.

The goal of this program is to make home ownership more affordable and reduce the number of rental homes.

“Many of our clients have hope of buying their own home. These families pay more in rent than they would pay the required monthly payment. If they paid $3600 for a one-bedroom apartment, they would pay about the same if they took out an $800 mortgage,” said Rebecca Reynolds Lytle, senior vice president and chief lending officer.

Loans with no down payment were distributed during the housing boom, which peaked in 2006. However, in 2008, it led to the collapse of the mortgage market and the financial crisis.

However, private lenders, in Korea, will continue to demand an advance payment of 20% when buying property.

Previously "Forum" wrote Four reasons why in 2016 cost to buy a house.