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100% financing is going away

The only true 100% financing left will be VA.

FHA is still at 3% down payment. This program allows 6% to come from other parties. So the 3% down payment and the closing costs can be covered through seller concessions.

All other first time homebuyer programs will be with a 3% down payment. Most of these products have a maximum of 3% that can come from the seller to cover down payment and/or closing costs.

Product Updates:

· Effective 3/31/08 the Flex 100, My Community Mortgage 100%, and Home Possible 100% are being discontinued. The MI companies will no longer insure these products at 100% LTV.

· Due to MI restrictions maximum LPMI is limited to 97% LTV.

· The Stated Income/Stated Asset program is now limited to maximum 90% LTV.

Jerry Wright

Posted by Jerry Wright on 03/20/2008 06:55 PM

Comments (4)

home loan, mortgage, refinance, marysville, edmonds, lake stevens, everett, stanwood, arlington, mill creek, brier, lynnwood, monroe

4 Comments on 100% financing is going away

MAR

2008

We do alot of Ameridream FHA financing as well as USDA Rural Development loans. Do you see them going away?

Ykes....

The easiest and only way to make serious money for many is through Real Estate. Thanks to those overly ambitious money mis-managers at Bear Stearns and other investment Co's of their ilk, we the non-billionaires will have to pay the price by selling our completly devalued realestate for nothing because thats what the dollar will be worth. It's the dawning of the Hard Money Lenders...

Jerry, It is a great thing to be a lender living in a military town right now. The VA still has credit issues but at least it is 100% LTV.

MAR

2008

No the down payment assistance is not going away anytime soon. They tried but lost in court late in 2007. We as Loan Officers and Realtors just need to keep up with all the changes. I believe the guidelines have reacted too strongly and soon, perhaps in a year, they should ease a bit up.

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