Mortgage rates are down. Way down, actually — at least from where they were. And they may go lower.

Last week saw rates take the largest one-week plunge in more than a decade. Great news for homebuyers who were on the fence or on the cusp of being able to afford to enter the market. Great news for home sellers, who will likely see low rates bring more buyers to the market — increasing demand and prices offsetting any positive impact that low rates had on affordability. Which will then turn buyers off to the market.

How did what started out sounding like great news, not seem so great in just a couple of sentences?

Actually, the story line seems like déjà vu…that what should be a strange experience feels much more familiar than it should. We have already seen this movie, but will happily sit through it again like it’s some cult classic — that as the credits roll you sit there wondering why it seemed so much better last time you saw it.

No Money Down Plot Twist

This time, let’s take the down payment out of the affordability equation as prices increase. You’re saying to yourself “I’ve seen that movie, too.” It drags on as the mortgage lender tries to navigate some state or local housing agency bond program where one of the buyers doesn’t meet some ridiculous requirement like “minimum height” to get the loan or grant. Or the seasons change waiting for it to go through.

But that feeling of déjà vu will fade when you realize Embrace wrote this script with its new no money down program. There is no state or local bond program taking a lead role.

Some of the Embrace no money down movie plot twists:

  • Financing options up to 101% combined loan-to-value on a first and second mortgage
  • Borrowers with a FICO score of 660+
  • Borrower can be a first-time or previous homebuyer
  • Financial assistance for down payment and closing costs
  • No mortgage insurance required