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100% financing available only for government loans, in Michigan

Well, the last 100% mortgage option has pretty much been taken away from us, and most others, in the country - as of March 31st. The Flex 100 has been discontinued.

There are a couple of government programs that still allow 100% however. The Guaranteed Rural Housing Loan is for any area outside of a City Proper and most of Michigan does fit that description.

There is NO loan limit, however, there is an income limit that is based on how many persons live in the household - all children and elderly counted.

There is a 2% funding fee, as in all government loans (1.5% or more), and it is a 30 year fixed rate with no pre-payment penalties. The rate right now is around 6.375% with NO PMI!

They are really fantastic loans and a great alternative for buyers. I find they are also helping get folks back into our rural areas which have suffered quite a bit with the foreclosure market around here.

Of course, VA is also 100% financing with NO PMI, similar rate of 6.5% and the same type of funding fee.

The mortgage world has been ever changing, to say the least, since last August. It is challenging to keep up with it.

However, I suppose that, ultimately, these changes needed to come. It isn't so bad that borrowers have good credit, a job and a down payment. They might take home ownership more seriously ;-).

Posted by Candace Pinaud on 03/26/2008 05:58 AM

Comments (21)

government loans, usda, grh, rural housing, buyers, borrowers, 100 financing, va, no pmi, 0 down payment, fixed rate

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21 Comments on 100% financing available only for government loans, in Michigan

MAR

2008

I'll have to check with local lenders on the Rural Housing Loan possibilities in my area. Sounds like a great program

We still have Genesis, and other down payment assistance programs with FHA to get a 100% loans in Michigan.

Hi Candace, I think the GRHL is a great program and like you said most of the county will fit into that, at least Saline, Dexter, Milan etc.... where I sell. Very funny last sentence.

Hey Russ,

YEP we sure do have DAPS programs with FHA in Michigan to help cover the necessary 3% investment from the buyer into the deal. I just can't do FHA's unfortunately! We are working on it. I LOVE those DAPS programs. I won a client of mine $4000 a few years ago in the Fresh Start program with Ameridream.

Thanks for the comment Penny. If you go this site, http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do you can see if a property is eligible for this program :-)

Morning Missy,

I was thinking about you when I wrote that post! Saline is almost all covered with the GRH program and all of Livingston county as well. It's helpful to have 'some' alternatives!

We have some rural loans here. But the buyer should feel commitied and throw in some $$$

Morning Charlie,

Yes, I agree with you. However, in Michigan life has been tremendously difficult over the last two years and many folks simply don't have a savings anymore. Lots of people have lost their jobs over the last two years and had to live off savings to survive.

This particular loan still requires you to have a job, have decent credit and have your affairs in order, so to speak ;-).

In the Ypsilanti area, especially, we need all the help we can get.

I will check on the rural housing loans here in Indiana. No more 100% though and that if final! Make your day a great one!

Just got the news about Flex 100, My Community 100%, and Housing America 100% programs in a company email. The sky really is falling!

Hey Jacob,

Try this web site for eligible property areas in Indiana for the 100% USDA program.

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

I KNOW! 95% is the maximum in the conventional world anymore. I suppose - thank heavens for government programs! VA, USDA & FHA.

Something's got to give, eh?

APR

2008

I have a new lender that is willing to pick up the second for the declining market deduction from the LTV. So its 100% so if they can not qualify with the USDA, FHA, or My community Product due to income restrictions. Let me know, California only sorry... oh the catch is there is still MI on the first mortgage...

APR

2008

Morning Mark,

Thanks for the comment! Sounds interesting, especially for California as they are seeing some of the worst of things right now! You should capitalize on that one - MI or not!

Unfortunately we don't do loans in CA at all....shoot, barely able to do loans in Michigan ;-).

MAY

2008

Candace, can you share your experience with getting FHA approved? Fortunately I can offer it, but a friend of mine at another company who is trying to get it has been waiting over 6 months at this point. Is there just a huge back-up of applicants? thanks..

MAY

2008

Thanks for the comment :-). i am actually not FHA approved :-(((. and i am incrediblt disappointed by that as i am in dire need of FHA loans in my market of Ypsilanti, MI. i can do them as a broker direct - meaning i bring the deal to a specific FHA lender and i can charge 1% point on the HUD.

But the rate's not that good and the YSP i am missing is painful.

For your friend trying to get approved - tell them to stay patient. FHA approvals take 6 - 12 months but are SO worth it!!!

I deal with the GRH Loan myself. It is a great program. Thank goodness there are still some 100% options out there for our borrowers! JENNIFER

MAY

2008

Hi Candace, The RD Loan Program is great. I have been using this program more frequently now and repairs can also be added to the loan, especially if the contract is a REpo and it needs repair escrows. Good Luck !

DAPS are king with FHA to get 100% and even closing and prepaids. I haven't met a seller yet that is not willing to raise the sales price to help cover costs ;)

MAY

2008

hey Eric,

thanks for the comment. can you refresh my memory on what types of repairs are allowed with the RD program? the house has to appraise for more than they bought it for right?

i love DAPS too! i wish we were an approved FHA broker - i am DYING without FHA!!!!!!! the big problem we have in Michigan, however, with increasing sales price is that the house usually won't appraise for thehigher price.

especially if the appraiser has to comment on the previous listing price. but i still love them and very happy they didn't go away as previously threatened :-).

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