What is so evil about a 100% Loan?

What we have learned in the whole sub prime debacle is the 100% loans are bad, evil and scary. The borrower needs blood in the transaction or they will just walk away. I have been doing FHA and VA for a very long time while others were doing 100% sub prime loans because they are easy. I was doing FHA and VA loans because I thought it was the right thing to do. This is an amazing fact that I just found out. That VA loan has the lowest default rate of any other loan! VA loans are 100% loan with no HVCC for  appraisals. How can that be? With all the wonderful changes implemented to protect the banks from defaults and foreclosures, the evil 100% loan has the lowest default rate of any loan. Maybe the Fed and congress should look at the VA loan for what works.

 Summit Home Mortgage Inc

 Jeff Engum Branch Manager

 Summit Home Mortgage,Inc

4410 Golf Terrace, Suite 110

 Eau Claire, WI 54701

jengum@summit-mortgage.com

www.mortgageeauclaire.com

tel: mobile: (715)852-2814 (715)579-8915 

 

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Big changes to FHA-January 1, 2010
09/21/2009
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Big changes to FHA-January 1, 2010 1) The funding source of any FHA loan must have one million dollars in funds verified by FHA. 2) Brokers will no longer need to be individually certified by FHA to do FHA loans. 3) The streamline refinance as… more
 
Jeff_engum

Jeff Engum

Eau Claire, WI

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Open Mortgage

Address: 1101 West Clairemont Ave, Suite 2F, Eau Claire, WI, 54701

Office Phone: (715) 852-2814

Cell Phone: (715) 579-8915

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