Anyone who could fog a mirror could get a 105 percent loan
Housing prices expected to drop more / Berkeley economist says recovery will take 3 or 4 years
The number of buyers who purchased their homes with unconventional loans, or mortgages that start out with extremely low payments and in some cases allow borrowers to rack up more debt than equity, also raise concerns about the stability of the housing market, Rosen said.“Anyone who could fog a mirror could get a 105 percent loan,” he said. “And that means anybody.”
My understanding is that if you can’t fog a mirror, then you can only get 80%.
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