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Question: Is a 1 percent down payment mortgage a good idea?

Bob’s Answer: NO

Nothing-down loans were big losers for lenders and borrowers during the fairly recent housing bust. The latest version of the “near nothing down” mortgage is supposedly different but this is a bad idea.

Housing values have a tendency to decline after years of positive growth. Under federal rules, applicants must demonstrate an ability to repay debt, have solid credit histories and scores and must document everything.

That, however, is not a guaranteed safety net.

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