And it’s GONE! Flagstar Bank Just Brought Back The Zero-Down Mortgage

And it’s GONE! Flagstar Just Brought Back The Zero-Down Mortgage

Flagstar Bank, has come up with a genius, innovative new mortgage product that they believe is going to be great for their investors and low-income housing buyers: the “zero-down mortgage.”  What’s better, Flagstar is even offering to pay the closing costs of their low-income future mortgage debtors.  Here’s more from HousingWire:

Under the program, Flagstar will gift the required 3% down payment to the borrower, plus up to $3,500 to be used for closing costs.

According to the bank, there is no obligation for borrowers who qualify to repay the down payment gift.

The program is available to only certain low- to moderate-income borrowers and borrowers in low- to moderate-income areas throughout Michigan.

Borrowers would not have to repay the down payment or closing costs. But a 1099 form to report the income would be issued to the Internal Revenue Service by the bank. So the gifts could be taxable, depending on the borrower’s financial picture.

Flagstar said borrowers who might qualify for its new program typically would have an annual income in the range of $35,000 to $62,000. The sales price of the home — which must be in qualifying areas — would tend to be in the range of $80,000 to $175,000.


5 Responses to “And it’s GONE! Flagstar Bank Just Brought Back The Zero-Down Mortgage”
  1. nadianasrawi says:

    Too good to be true is not true!

  2. coltonm001 says:

    Oh Hip Hip horay now that millions of Americans credit is shot due to illegally executed foreclosures occuring in the millions we are now supposed to feel grateful for anything coming from the banking sector criminals is another crock of you know what. Buyers beware because these solicitors do not keep their agreements and have hidden underlying between the lines agendas not in your best interest and when you take your dispute and grievance before our courts of law they will also dog you and make you out to be the criminal regardless of the excess fraud, fabrication, forgery and undisclosed hidden plans to make you the fall guy for a system of banking sector theft to remove all homes and property from all of the American people. Don’t waste your time and fall for the “charming” offer steeped in deception, lies and criminality that we all know where it leads. Zero plus zero always equals zero no matter where, when or how you add it up.

  3. bollivar4 says:

    I don’t live in Michigan.

    • Bobbi Swann says:

      You don’t live in Michigan? Flagstar is nationwide; their home base is in Michigan. Form their bio: Our mortgage division operates nationally through 95 retail locations and a wholesale network of 1,000 brokers in all 50 states.

  4. Bobbi Swann says:

    The cartoon fits perfectly ~ the only one that gets screwed is the borrower.

Leave a Reply