Option Morgages- LA Times Article

[Jellyfish]

I was wondering if "option ARMs" are allowed or popular on vacation or second homes (of course it seems there are NO rules...) Read this:

http://www.latimes.com/business/la-fi-option11dec11,0,6789284.story?coll=la-home-headlines

Do we have this problem in SoWal? I think lenders require a decent down payment on 2nd homes

 

[SHELLY]

I was wondering if "option ARMs" are allowed or popular on vacation or second homes (of course it seems there are NO rules...) Read this:

http://www.latimes.com/business/la-fi-option11dec11,0,6789284.story?coll=la-home-headlines

Do we have this problem in SoWal? I think lenders require a decent down payment on 2nd homes

Option Arms became the loan of choice for folks who were hoping for a quick flip...so I'd bet my bippy that there are more than one or two in the neighborhood. I'm sure folks who bought a flip at the top of the market and now can't sell are finding the option arms a bit uncomfortable if they were paying rock-bottom minimum.

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