Banks Lead On Zero Downpayment

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As an initiative to eliminate the statutory requirement of a minimum 3% down payment for FHA-insured mortgages for home buyers remained tied up in Congress, banks have taken the lead, US BANKER reported.

Citizens Financial Group of Providence, Rhode Island, has had a zero-down payment product since 2000.

Wells Fargo & Co. of San Francisco introduced another program payment program in March 2002, according to US BANKER, an affiliate of The Credit Union Journal. Wells Fargo, which has lent $8 billion with that program, is now offering a 103% percent financing that not only covers the home price but also closing costs.

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