The zero down mortgage is back and it starts in San Francisco with Poppyloan: Need $2 million for a shack but don’t have the money? No problem!
ByThe Taco Tuesday house humping brigade is having a tougher time denying that we are in another bubble. Sure, they keep pointing to prices going up and rents surging but what about stagnant household incomes or the stock market getting kicked between the legs? According to these delusional Kool-Aid drinkers, everyone is saving money and is perched on the fence ready to bounce on that piece of crap real estate that was built during the Great Depression. “But we don’t have no down payment loans!” Of course much of the move in prices over the last few years came from investors, foreign and domestic, that drove prices into the stratosphere. In the Bay Area, with the typical home selling for $1.2 million, even high income tech households are unable to buy. And you really have a double bubble. Easy venture capital money is trying to find those next mystical unicorns (i.e, Twitter, Facebook, SnapChat, etc) but this is another symptom of hot money trying to find a home. All of this growth is predicated on prices only going up. With households broke, a new product called a Poppyloan is here to save the day bringing back the zero down option. What could possibly go wrong?…
