Here in Central Florida the housing market has been flat to struggling. Home prices have dropped a bit (about 6% over the past year), but nothing disastrous. Many sellers are holding out for top dollar, hoping to get as much or more for their home as they paid for it a year or two ago. Many buyers are holding out for bottom dollar, hoping to get a "steal" on a house by paying no more than 50-80% of its current appraised value. This has created a standoff, where the inventory of unsold homes has increased.
Now, there's a new challenge for buyers - most of the 100% loans (often referred to as Zero-Down Payment) are no longer truly 100% loans... at least not for Central Florida.
Why?
Due to the small drop in property values, the government agencies that back up the lenders (Fannie Mae and Freddie Mac) have declared this area to be a "declining market" - requiring all borrowers who use their loan programs to come up with an extra 5% downpayment from the maximum loan allowable. In other words, if you looking at either the Flex100 or the MyCommunity100 loan programs, you, the borrower, would have to first qualify for the program at 100% then put down 5% on the house in order to close the loan. So, your 100% loan would really be 95%.
This has been true for many other areas of Florida for some time. Now, it also includes Orange, Seminole, and Osceola Counties.
But notice, I only said "MOST" above! That word, "most," is key to some really, really good news!
My team has identified two significant sources of 100% loans that are not affected by Fannie Mae nor Freddie Mac!
If you are either purchasing a home in what is declared by the USDA as a "rural area" or are a veteran of the U.S. military, you may qualify for one of these Zero-Down Payment loans!
For the East Orlando area, "rural" would include affordable places like Bithlo, Christmas, and even the beautiful community of Wedgefield.
Special Zero Down Payment Home Loans for Lovely 3 to 4 Bedroom East Orlando Homes from $200,000 to $400,000. Call 1-888-582-2958 ext. 40 for a 24hr Free Recorded Message.
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