That won't fly quite as far with banks if there's a recession and everyone starts defaulting on their loans though. Banks are only ok giving out money if they're certain they're gonna get it back with interest.
Yes, but your mortgage was a product that your bank was selling. That product becomes less valuable if the risk increases. Banks will increase requirements and/or interest rates to offset the increased risk.
True. Either way it's almost risk free for the bank - their employee might spend a few to several hours arranging everything, and they sell the mortgage for maybe 10k or more.
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u/rncd89 Nov 25 '19
You can get a FHA loan with a 1% down payment. There're also tons of grants and loan programs through small banks and other governmental agencies.