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From Mike Shedlock (Mish). It’s a perfect time to do something really stupid, like offering zero percent down payments on mortgages. Case-Shiller national and 10-city indexes via St. Louis Fed, OER, CPI, and Rent from the BLS Perfectly Stupid Timing Morningstar reports One of the Biggest U.S. Lenders is Offering 0%-Down-Payment Mortgages for First-Time Home Buyers. Home buyers will be able to buy a home without putting any money down under a new program launched by United Wholesale Mortgage, one of the largest U.S. mortgage lenders. The Pontiac, Mich.-based company’s new program will be available to first-time home buyers and...

Home buyers can once again purchase a home using FHA financing with a zero down payment. Previous zero down payment FHA loan programs were funded by seller contributions funneled through a nonprofit group which then donated the down payment to the purchaser. These seller-financed down payment programs were terminated in 2008 after the FHA experienced default rates three times higher than when buyers made a cash down payment. The innovative zero down payment FHA home purchase program was recently introduced by The Lending Company of Phoenix, Arizona. In order to meet the FHA required 3.5% down payment, the borrower receives...