The more things change, the more they stay the same. 

In the mid 80s to late 90s, that's all we had.  The less than 5% is a recent phenomenon. 

Folks will have to find some money.

Thanks for the heads-up, Ken.  If most of us weren't Realtors, we would probably agree that nothing down isn't a great idea, anyway.

680 credit score....that's whew....

You're right Lenn,

When I bought my last two homes, many years ago, I had to come up with a 10% downpayment.  My how times and expectations have changed.

I think the old way is better for the economy and home owners overall, but I think it will be a very difficult transition for the real estate and mortgage industries as far fewer people will qualify to buy a home.

Brian,

Even as a loan officer I questioned whether 100% finaincing on a home was a good idea.  Frankly I don't think it should have ever been available to home buyers but the bigger problem we face today is that if all the 100% purchasers disappear, who will be left to support the first time home buyers market and give provide second home buyers with the money they need for the down payment. 

I think the whole industry is in a pickle and I think most of us know that it will get worse before it gets better.

Again I have to say, thank God for FHA and down-payment assistance programs.

Konnie,

680 is getting up there a bit from what we have all been used to.  I remember the days when there was almost no one you could march into my office that I couldn't get 100% financing for.   680 is obviously a safer score for an investor in mortgage backed securities (MBS) It's too bad Wall Street and the housing industry strayed so far from what we all knew was common sense.

Ken

Hi Ken ~~ It is reasonable to require a minimum credit score.  As a REALTOR, I counsel my clients regarding the 100% financing and what it means to them, especially if they are not sure how long they will own the property.

Good post!

Thanks Marzena,

Your right about the minimum credit score. I think the lowering of the minimum credit score over the past few years has really contributed to the current mortgage debacle.  There will be a lot less business for mortgage people going forward but the quality of the loans will go up dramatically.

Ken