Part 6/10:
The concept of 0% down mortgages raises essential questions. How is this instrument being utilized in today’s market? Builders often collaborate with existing mortgage programs, such as FHA loans, which typically only require 3% down. By covering this nominal amount themselves, builders can advertise 0% down, not out of generosity but as a strategic maneuver to attract buyers when traditional financing options prove daunting.
However, invoking memories from the mid-2000s, one must ask: is it wise to extend such offers? The fact that builders are reverting to such tactics serves as a concerning indicator of market fragility.