Rhonda Porter says the 100 percent LTV products are history. This is a good thing. Owners with no equity in their houses from the beginning--are renters.
The mortgage market periodically tries zero down payment and negative amortization mortgages. They never seem to work. The HUD 235 program (little down, negative amortization) had default rates of around 35 percent. Graduated payment loans (which had negative amortization) got the not so kind nickname of "gypems." Skin in the game, people, skin in the game. I don't know that it needs to be a lot, but there has to be some.
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