Banks are starting to do the same shit that led to the 2008 financial crisis.
Lately I've been seeing ads for 1% down mortgages and eligibility for sub-600 credit scores.
Discussion
Where?
Let me scoop a multi family property real quick I can live in for a year and then fully rent out to have chasflow so I can go live in my RV and homeschool my son.
It's not quite as bad as the early 2000's yet. They're still verifying income at least and I haven't seen any variable rate balloon mortgages of the type they were suckering unsuspecting buyers into back in '06.
But they're reducing down payment requirements and gradually lowering credit score requirements. Same slippery slope.
Early bird gets the worm. I have a 700q score. I'll take a 1% loan for a cash production asset like multi family real estate and scoop up some of this "affordable housing" being built to rent out, so my lifestyle is affordable.
🤣🤙
Kinda. Firstly, The ads are a misleading. Very short duration teaser rates, huge down payment etc
Also the builders are subventing the rates by “buying down” the rates.
All built in to the cost of the home which is crazy high so people just assume it’s inflation related.
I do agree that lenders are playing with fire as to trying to anticipating what rates are about to do. They all are so sure rates are coming down.
I hope so, but things are not normal right now.