When Clark answers questions on the air, he often makes a recommendation but he also tells you how he feels about the issue at hand. One of those topics is “no money down” loans. In fact, in 2005 there will be more opportunity to buy a home without paying one cent down, and this is scary. There will be subsidies, such as “The American Dream Down Payment Act.” Income requirements will dictate who is eligible. But the problem is that homes are actually more expense than people imagine, especially if they put no money down. First of all, the foreclosure rate on a no money down purchase is incredibly high. Maybe one in three of the people who buy this way will enter into foreclosure. The alternative takes more time and effort, but it’s worth it. Save something over time, and put some money into the deal. Syndicated financial writer Kenneth Harney writes about something called “The Single File Mortgage.” People with little cash but very high credit ratings often get involved in these mortgages, and they are very expensive homes – up to $650k. If you have the higher score, you can get this kind of loan. The market place is trying to adjust to the risk involved in such loans. In the long run, however, one is almost always better off by saving the cash before getting into the mortgage.