100% FHA Loan - Call me now!!!

Okay, got your attention right, well this is B.S. There is no 100% FHA loan, there is still a 3% required downpayment for FHA loans for purchase. I have seen lenders advertising new FHA 100% loan, which is bogus. Countrywide in our area is going to realtor offices and advertising it.

What they are really doing is saying if the seller gifts 3% to a non-profit that will gift the money to the buyer then we have 100% financing. This has been around for years and is nothing new. The 3% required downpayment cannot come directly from the seller, so we have to go to a non-profit company. FHA requires the company to be non-profit.

So if the seller doesn't agree to giving the buyer the 3%, then this option will not work. So beware of people advertising 100% FHA loan.

John Thomas - Citizens Lending Group - http://www.DelawareMortgageLoans.net

Posted by John Thomas on 09/29/2007 02:06 PM

Comments (2)

100 financing, fha loan

2 Comments on 100% FHA Loan - Call me now!!!

Hi John:

Actually if the Expanding Homeownership Act of 2007 (H.R. 1852) passes the Senate there would indeed be a zero down FHA option available. This Bill passed the House earlier this month and now sits in the Senate Committee on Banking, Housing, and Urban Affairs.

I have seen mortgage companies in anticipation of this Bill being passed starting to take applications for it. But you are right in that it currently doesn't exist without some sort of non-profit contribution.

Annette Akey

09/29/2007 02:36 PM

by Illinois Homes Realty, Inc.

Hi Annette, You are right on with the bill but it is a long way from being law and from any bank being able to offer the program. Even if it goes thru the senate it has to go thru unaltered for it to go on to the president. if it gets changed , it goes back to the house, so you can see it is not something that happens very quickly and our congress is slow!! I just wanted to point out the false advertising that is going to be coming out.

09/29/2007 09:08 PM

by John Thomas (Primary Residential Mortgage Inc.)

Leave a response…

Name:

Notify me of new comments:

Comment:

What does the graphic say?

Loan Officer: John Thomas (Primary Residential Mortgage Inc.)

John Thomas
Newark, DE
More about me…
Primary Residential Mortgage Inc.

Office Phone: (302) 368-7132 Ext.: 12
Cell Phone: (302) 588-3665
Email Me

Mortgage & Real Estate Education and News from a top professional in the industry.

Links

Advice on obtaining a Mortgage in Delaware

Archives

Find DE real estate agents and Newark real estate here on ActiveRain.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
© 2007 ActiveRain Corp. All Rights Reserved