Do you mean 80/20 loans will be done away with? If so, only VA and FHA loans will provide 100% financing.

Stephen ~  Yes, this is true by Wells Fargo's guidelines.  Other lenders may still choose to carry those loan products.  In fact, I know that some do.  While some clients prefer a "reputable" household name like Wells Fargo, it was my intention to educate only on their loan terms for the moment.  As additional news becomes available, I will keep you posted.  Great question, and thanks for asking it!  :)

Sarah - Thanks for the response. I assume Wells Fargo Mortgage will provided 80/15 loans with 5% down? 80/10 loans with 10% down?

This is a challenging environment for lenders and borrowers alike -- not to mention agents and loan officers.

100% financing won't be gone as a whole. Many lenders still do 100% 1 loan with mortgage insurance. That has been the route I've been taking for the last 2-3 months. Don't get TOO alarmed Stephen. 

Stephen ~  You are making a correct assumption on this matter.  I just got off of the phone with my AE in regards to a particular file submission.  They are still doing the Home Opportunities loans at up to 100%.  So, that is also great news.  If you are familiar with that product, it is a manual underwrite with a lot of stipulations.  However, they will go to 100% with credit scores over 620, and in most conditions.  This is a great product and will remain a viable solution to lending.  Furthermore, this was meant as informational, not as a method to frighten anyone... :)  Feel free to phone me if you have any specific questions I can try to help you with.  Yes, it is a challenging time, but I believe that it will challenge us to be better at our business!  Hang tight...

Rick ~  You are correct, and as I said in my first response to Stephen, I know that it is still an option.  Curious, though?  Why have you been going for 2-3 months with making the borrower pay MI?  Has it kept their monthlies lower that way?  Which lenders do you generally enjoy working with who still offer that product?

Thanks. I think the popularity of VA and FHA loans will rise as this all shakes out. Meantime, congress should step up to the plate to increase loan limits on these products -- and completely make MI 100% tax deductible for ALL borrowers. As it stands now, only individuals who make less than $50K a year and couples who make less than $100K a year can write-off mortgage insurance.

Amen to that, Stephen!  Let's start getting letters out to the Legislators.  Let's get some borrowers some breaks, while still making them reasonable!  :)  Good to be conversing with you!