San Francisco is one of the more expensive cities to live in these days for both renters and homeowners. With that in mind, the San Francisco Federal Credit Union has unveiled its new "POPPYLOAN" (Proud Ownership Purchase Program for You) – a $2 million mortgage with no down payment, according to Diana Olick of CNBC.
To qualify for the loan, borrowers must work in San Francisco or nearby San Mateo County. The loan must be used for the purchase of a primary residence and cannot be used for a refinance.
credit union is willing to take the additional collateral risk if we can
mitigate our long-term interest rate exposure. There are built-in protections
for the borrower. When we qualify people for the loan we calculate the payment
today and again if rates were to change by 2 percent, and that's the payment
they qualify for," said Rebecca Reynolds Lytle, the credit union's senior
vice president and chief lending officer, who points to the credit union's very
low delinquency rate now and during the recent housing crash.