Citing skyrocketing housing costs, San Francisco Federal Credit Union announced a new loan program that will allow San Francisco-area borrowers to finance up to 100 percent of their mortgage – with no requirement for private mortgage insurance – on loans up to $2 million.
The new loan program is called POPPYLOAN, which stands for Proud Ownership Purchase Program for You.
According to the credit union, POPPYLOAN is available to anyone who works in San Francisco or San Mateo Counties and can be used to purchase a home in the nine Bay Area Counties: San Francisco, San Mateo, Marin, Napa, Sonoma, Santa Clara, Alameda, Contra Costa, or Solano.
To qualify for POPPYLOAN, borrowers must be 18 years or older and purchasing a single family home, townhouse, condominium, or 2-to-4 unit multi-family dwelling as their primary residence. Eligibility for the loan also depends on a number of additional factors, such as credit scores, income, employment status, and property value.
POPPYLOAN is structured as a 5/5 adjustable rate, 30-year mortgage. The interest rate on the mortgage cannot increase by more than 2 percent every five years and no more than 6 percent over the life of the loan.
However, the loan is not available to refinance an existing mortgage.
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Didn't we do 100% LTV real estate loans once before? How did that work out for the likes of CountryWide & WellsFraudo? Does the NCUA regulate this industry? Oh wait, the NCUA was at WesCorp & USCentral 24/7/365 & we see just how well that played out.
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