“But anything that goes up must eventually come down.”

by Jill Chodorov Kaminsky

“The notion of buying a home with no money down is understandably alluring. But what looks sexy in a lender’s advertisement does not always translate into what is best for your financial well-being.

“What is a zero-down loan? Also known as 100 percent financing, zero-down loans require no down payment to purchase a home. For those with little to no cash in savings, these loans are touted as a windfall for those who could only dream of owning a home.”

“During the real estate boom from 2003 to 2006, zero-down mortgages were widely used to assist aspiring homeowners to join the growing homeownership club. Buyers with no cash, bad credit and unstable employment were able to purchase a home — in addition, some obtained ‘no-doc’ loans in which income and debt were not even disclosed — all in the name of getting a fair share in skyrocketing real estate values.”

Read this analysis in its entirety at The Washington Post.