Buyers . . . do you need 100% financing? It is not a blanket endorsement, but is instead based very specifically on your geographic area.

For instance, if you were hoping to purchase a home using 100% financing . . . you'll want to read the following. Many online loan approval sources may be providing you with misleading information. For instance, my marketplace is Southern California . . . specifically Orange, Riverside and San Diego counties. All of California has been labeled as a "declining" market. That means NO 100% financing . . . with the exception of a current FHA product that involves Seller down payment assistance. Very few agents know about this and know how to use it. Please don't let someone waste your time by promising you a traditional 100% product that just won't be available at the crucial closing of escrow if you are purchasing in California!

In addition, the increases to the conforming loan limits do not apply to all counties . . . only those labeled as "high" cost areas such as San Diego, Orange and Los Angeles counties. Therefore a buyer in Orange County could use the new increased conforming loan limit while a buyer in Riverside County could not. The new minimum down payment is now 5% on conforming loans. This may even increase for the larger (over $500,000) conforming loans to 10% down. Jumbo loans (those over the conforming loan limit) are now requiring 15% down.

I know that it is tempting to hear what you want to hear . . . but please consult an agent who will help you make a successful purchase and not make promises that cannot be kept.

Loan parameters are changing daily. Please use a local agent who understands and follows the current lending restrictions and you will have a successful and even enjoyable buying experience.

To read more about the new Economic Stimulus Package, go to http://www.mercurynews.com/news/ci_8070140

I am happy to answer any questions! Please email me at denise@c21mdg.com