Bond Mortgages? Why haven't I heard of these

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Hi all!

edit: They also go by "bond loan programs"

I was having dinner with a friend of mine this weekend who works in the mortgage industry and he mentioned something I haven't come across, the bond mortgage. He explained it pretty simply, 10-20% is provided as the mortgage, and if the payments are made on time for 5 years you don't have to pay that initial 10-20% that would act as the down payment.

Could this be??

I haven't searched to see if this is real or predatory..just thought I'd try here first... 

since this is where I get the best information. 

Thanks!