No Money Down For NASA
May 5th, 2011
If you are a member of NASA, then you might qualify for a no-money-down loan – if you live in the right area of the country. The NASA federal credit union has launched a special promotion offering borrowers a no-money-down loan for a primary home purchase of up to $650,000[1]. If you want to go bigger, then you can put 5 percent down on a loan of up to $850,000. Of course, there are some pretty stringent qualifications. You can only borrow on properties in Maryland, Virginia and Washington, D.C. (among the strongest markets in the country right now). Furthermore, you do not actually have to be a member of the NASA credit union that is making the loans, but you do have to be “highly qualified” and be ready to face “tough underwriting and greater scrutiny of home appraisals.” Bill White, vice president for mortgage lending at NASA Federal, notes that he has been pleasantly surprised by the high loan quality of the applicants and is feeling good about the new business that the promotion is bringing in.
The loan offer will only exist until a “predetermined volume ceiling” has been reached, according to credit union officials[2]. There is also an associated refinance offer with similarly generous terms for borrowers who make the grade.
Do you think that this bank is making a wise decision with its highly qualified no-money-down loans?
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[1] http://blogs.wsj.com/developments/2011/04/29/we-have-liftoff-no-money-down-is-back/
[2] http://www.myfoxny.com/dpps/your_money/nasa-offering-no-money-down-mortgages-dpgonc-km-20110501_13008434
May 5th, 2011 at 12:11 PM
The news media seems to be making a big deal about the NASA credit union making these no money down loans……Navy Federal Credit Union has been offering 100% financing with no PMI and up to 6% seller concessions for some time…..and not just in the “strongest markets”
May 5th, 2011 at 4:31 PM
If the current administration is approving or suggesting this you can certainly be assured it is stupid.