Industry NewsMortgage

POPPYLOAN gives San Francisco buyers a way out of their rental rut

Credit union offers no-down-payment, 100-percent financing loans up to $2 million -- but is the program too risky?
  • A Bay Area credit union is making waves for offering no-down-payment, 100-percent financing loans up to $2 million.
  • Buyers must be at least 18 years old, members of the SFFCU and work in the counties of San Francisco or San Mateo. Eligibility also depends on credit score, income, employment status and other factors.
  • For real estate agents, POPPYLOAN brings more choices to the table for clients.

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A new mortgage loan program offered by a Bay Area credit union is making waves for offering no-down-payment, 100-percent financing loans up to $2 million -- but for many people living and working in the rental roller coaster that is San Francisco, it may be one of their few paths for homeownership. Half of income on rent That’s because some are spending more than half their incomes to rent apartments in San Francisco, where the median rent is upwards of $3,300, according to a recent Zillow analysis. And although Zillow’s Rent Forecast calls for rental prices to slow down slightly this year, San Francisco’s rent still far outpaces other major metropolitan areas like New York City, Seattle and San Diego. Rebecca Reynolds Lytle “Many people here are frustrated because home prices are so high, they don’t have the option to buy. At the same time, they are paying a ridiculous amount of rent and someone else’s mortgage payment,” said Rebecca Reynolds Lytle, senior vi...