Industry News

Home purchase promises fall short

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"Buy with no credit!" shrieks the headline on the Web site. A photo of a sprawling house posted on the site bears the caption, "We secured this beauty for only $1 down!" For $197, the site offers an e-book that will teach readers how to buy a house with no money down and no credit check. And there are other sites and salesmen with similar promises. Is it really possible to buy for no money down and no credit check? According to industry experts, the answers are "yes" and "probably not." Yes to the "no money down," but as to the "no credit check," they say it's unlikely. "Typically those who can qualify for 100 percent financing loans are very high-credit-scoring households," said Doug Duncan, SVP of research and business development and chief economist for the Mortgage Bankers Association. "You certainly can get a 100 percent loan-to-value loan, but you have to be a very high-wealth, high-income household with good credit," Duncan said. "I suppose if you were paying cash, you could bu...