United Wholesale Mortgage (UWM) is offering zero-down mortgages, widening homeownership but bringing back risky practices of negative equity for cash-strapped buyers.
With this program, buyers start without equity, risking owing more than the home's value if prices drop, needing to repay the interest-free second mortgage when selling or refinancing.
Buyers might be trapped with higher rates as they need to clear the second mortgage to refinance, urging caution and responsible borrowing with these arrangements.
#zero-down-mortgages #negative-equity #homeownership-risks #real-estate-market #responsible-borrowing
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