Quote:
Originally Posted by bizaro86
Don't you have to have pretty good credit to get those? My general impression is that the credit bar is higher than the average credit score of people with no savings.
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Yes the qualification for those mortgages are tougher than your typical mortgage.
Everyone's situation is unique, some people have great credit but simply don't have the money saved yet. Other people don't have money saved yet and happen to have bad credit as well, which leaves them SOL.
They aren't a hugely popular product as most people manage to scrape together at least 5%. Often times I see a lot of young buyers getting the down payment or at least part of it gifted to them from their parents.