Planning to buy a home but not sure if you can get an affordable mortgage?Did you think with the recent subprime events, all the100% loan programs with low to no Minimum FICO requirements had become extinct? Well think again...   

Recently, at a local mixer I met someone who was considering buying a home, the conversation led into the discussion that in everything he has ‘heard around' he has come to understand those good old 100% loan programs are becoming more and more extinct and are practically gone. When I asked where his source derived this epiphany, he simply exclaimed, "Everywhere!" Looking to me as if I had to be out of the loop to not hear this news.

Well, it's quite the contrary... It's times like this I love to share my knowledge of the industry and educate the uninformed on how experienced mortgage professionals in the industry, that kept up on underwriting automation and community loan programs, are still doing these loans everyday! Of course, we all hear & watch the news of recent subprime borrowers who have found themselves in a position of default. First, as unfortunate as this news is, a large portion of these borrowers overextended themselves and assumed that they could ride the steep appreciation of equity in their home that many homeowners benefited from and just refinance when the value goes up. This misguided opinion was what was ‘hear around' during those times. Second, the 100% loan financing programs were not created for this method in mind for managing your home equity. Moreover, even though a potential buyer is eligible for a home loan, then the remaining question should always be is this loan suitable with all financial obligations considered.

When the answer to the latter question is "Yes," then a 100% loan product is a great financing tool! There are still many great Fannie Mae approved mortgage programs that have very flexible credit guidelines for low to moderate income borrowers as well. They are available to purchase or refinance a single-family home, condominium, or a 2-4 family home. Some of the Highlights are:

• No minimum contribution from borrower's own funds (one-unit)
• Up to 100% financing - one loan
• Up to a 40-year term and options for initial interest-only period
• Eligible for Community Seconds or standard subordinate financing
• Available for 2, 3 or 4-unit properties for borrowers who want to live in one unit and rent out the others
• Competitive rates
• Choose a fixed rate or an ARM if you don't plan on being in the home for long
• No minimum borrower contribution
• Nontraditional credit allowed (only need three lines of credit verified) i.e. rent, utilities, cell phone...
• Considers some income from a co-borrower without a credit history
• Lender Paid Mortgage Insurance is available on this product
• Borrowers must be at or below median area income limits to qualify
• Not just for the first time homebuyer
• Available for purchases and rate and term refinances
• Also, options for borrowers with a disability or who have a family member with a disability
• borrowers who need greater underwriting flexibilities including non-occupying co-borrowers
• And even more for borrowers who are teachers, educational institution employees, police officers, firefighters, and health care professionals
• Even offers for borrowers with higher ratios and gifted reserves

Randolph Ramirez is a financial expert, a product derivative of his law school education and extensive years of Industry experience. Randy currently holds the position of President of Wilshire Financial, Inc. and his specialties as a mortgage broker include the structuring and engineering of transactions, with a focus on the integration of diverse strategic issues such as tax deductibility, leverage, cash flow, and college and pension planning into a coordinated, comprehensive plan of action for his clients.