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Silicon Valley Elites Get Home Loans With No Money Down

By gsr following x   2016 Jul 27, 8:33am 1,138 views   2 comments   watch   nsfw   quote     share    


They’re courting Silicon Valley workers with tailored loans, guaranteed 24-hour approval and financial-planning services. Social Finance Inc. has deals with Google and other top technology companies that allow it to market to new hires. First Republic Bank -- which gave Facebook Inc. billionaire Mark Zuckerberg a 1.05 percent interest-rate mortgage -- has opened branches in Facebook and Twitter Inc. headquarters. San Francisco Federal Credit Union will finance 100 percent of houses costing up to $2 million.
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And the notion of 100-percent financing makes some in the industry nervous. “Given what we went through in 2008, zero-down financing is suicidal for our country,” says Chuck Green, CEO of Bay Area Captial Funding Inc., a mortgage brokerage that offers loans from about 40 different companies. “We have to learn from our mistakes.”

For its part, San Francisco Federal Credit Union sees the gamble as manageable. Four in 10 applicants are rejected and those that have gotten loans have an average FICO score of 747 and average household income of $219,000, says Rebecca Reynolds Lytle, chief lending officer. “We are vetting our borrowers to make sure they can afford it and have reserves.” But in the end “it’s a loan -- it’s not going to be risk free.”
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#Housing
http://www.bloomberg.com/news/articles/2016-07-27/zero-down-on-a-2-million-house-is-no-problem-in-silicon-valley

1   justme   ignore (0)   2016 Jul 27, 8:37am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Wow, that is insane.

2   someone else   ignore (0)   2016 Jul 27, 9:40am   ↑ like (0)   ↓ dislike (0)   quote   flag        

The next tech downturn should be very interesting.


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