Banks have been reporting a large number of defaults on their 100 percent mortgage loans, according to RUV. The loans, which require no money down to purchase a house, have been very popular with students and low-income residents.
But according to Asta Helgadottir of the government financial assistance agency, the loans have been a negative for low-income residents.
Ms. Helgadottir says that 100 percent loans have only increased the cost of housing due to an increased demand for homes. People are now paying much more money for a home than they would have a few years ago, she says.