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Xin Zhu San Jose Downtown

It's not surprising news that millennials struggle to afford the down payments on homes. But according to news editor Clare Trapasso, Silicon Valley techies could tap into zero down mortgages.

Lenders seem to be banking on the potential of well-paid tech startup workers becoming the next Steve Jobs, and so are offering them guaranteed 24-hour loan approval, financial planning services, and even loans with no money down since they're a good financial bet. Sky-high prices in San Francisco led the San Francisco Federal Credit Union to begin offering 100% financing for 30-year adjustable-rate mortgages on residences going for up to $2 million. However, only about 60% of applicants can access the mortgage if they have an average credit score of 747 and an average income of $219,000.

Offering loans with no money down still makes some in the industry nervous, bringing back unpleasant flashbacks to the subprime mortgage crisis. The crash was predicated on 100% financed loans and lousy income verification, and plunged the nation, and much of the world, into a deep recession.

And there are signs that the tech industry may not remain quite so strong forever. Venture capital funding dropped 20% in the second quarter compared with the same time a year earlier, according to a PricewaterhouseCoopers and National Venture Capital Association report. In the first four months of the year, Bay Area layoffs in the tech industry were roughly double that during the same time last year, according to The San Francisco Business Times.

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