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Time to re-group, no more 100 percent loans!

By Michelle Gordon

Real Estate Agent with JH Realty Partners 6501309180

April 01, 2008 10:59 AM

Well as a Realtor, with one of my specailties assisting low to moderate income home buyers, you can guess what my frustration level is with this new information.

I understand this is also effecting the MSHDA loans as well.............I have many buyers who have used MSHDA products and not only the 100 percent has gone away, but to get a reasonable price for PMI the credit score qualification has gone up!

I know FHA is still good with with using AmeriDream down payment assistance. and you can use this with MSHDA, but this is not always the best loan option if you are in a competitive purchase situation.

So I wonder, Kent County Lenders..............what is out there?

I have opened this up for consumers as well, as they need to be informed as what is available in this ever, rapidly changing market.

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Joe Adams

Major Mortgage USA/Branch Manager - Montrose, CO

Check out USDA Rural Development. You can roll in closing cost. 102% loan.... the 2% is the "funding fee"

Apr 01, 2008 11:03 AM

Chelle Gassan

RE/MAX Regency and Staged Homes VA - Bristow, VA

NOVA Realtor and Stager

If you have any Veterans, the VA Loan still does 100% financing. That, as far as I know, is the only 100% option available these days. It pays to have served.

Apr 01, 2008 11:04 AM

Michelle Gordon

JH Realty Partners - Ada, MI

Finding Your Place

Hey there Joe,

I am just learning about the RD program............here is the site to check out to see if you qualify for a loan financially and if the home you are looking at is located in an area that fits the guide lines.

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

Chelle, I know you can do MSHDA VA, I wonder if this would make a difference with MSHDA? And our Men and Women who have served deserve all the breaks they can get! They have earned it!

Apr 01, 2008 02:27 PM

Kris Wales

Keller Williams Realty - Lakeside Market Center - Macomb, MI

Real Estate Blog & Homes for Sale search site, Macomb County MI

Michelle, I don't see a FHA program with the down payment assistance being a hindrance at all in a competitive offer situation. Sellers typically look at their bottom line, nothing else. I've had no problems at all when my buyers have used this program.

Apr 01, 2008 09:38 PM

HI Kris, here is a couple of examples of what has happened to me..............one seller would not even take my offer, as they were an older couple and have never heard of this program before and they thought I was doing something illegal. Another time my offer net for the seller was more then the others and the listing agent's client thought it was a "risky" loan and took a lower offer. There are still many people who are selling that are old school, or have not bought/sold in a long time.

Apr 01, 2008 11:24 PM

Anonymous

VA, Rural development and FHA with the Down payment assistance are the only 100% financing options out there currently and I wouldn't be surprised to see changes on these programs just like MSHDA. It has already been rumored that some lenders are going to rick based pricing on FHA, not allowing the DPA for credit scores below 620. Let the fun begin!

Apr 02, 2008 12:02 AM

Hang on tight everyone.......I have a lender coming on (hopefully tonight) who is going to tell us about an 100 percent loan product they still have. What I do now you need a 620 score and can NOT buy in what will be considered a declining market by an appraiser.

Apr 02, 2008 12:02 PM

Hello Michelle and buyers in the area.

It certainly is a challenging time in the lending arena. I have a product Founders Bank & Trust has designed to help low to moderate income buyers purchase a home. Right now it is OK if it's considered declining by the appraiser and your credit score can be as low as 620. Give me a call and I'll be happy to see if might fit for you.

I also have FHA and have been having good luck with the Down Payment Assistance program. Sometimes the price must be increased a bit to make it work but so far I've been able to have the homes appraise as needed. FHA doesn't mind, at this point, if the market is considered declining. RD (Rural Development) is a 100% product we carry, but it's for homes in the out-lying vicinity only, not in the City of Grand Rapids.

MSHDA is still one of my very favorite products because of their low interest rate and in some cases they will lend to 103%. If the appraiser states the home is in a declining neighborhood then MSHDA requires that to be decreased by 5% so 2-5% may be needed as down payment. HOWEVER, please know that not every single neighborhood in the greater Grand Rapids area is considered declining by all. The appraiser carefully measures that individual neighborhood, rather than just using a blanket over all of greater Grand Rapids.

Again, I'd be happy to see if any of these products might fit for you. Happy home shopping!

Jane Martin, Mortgage Lender, Founders Bank & Trust, 318-1298 jmartin@foundersbt.com

Apr 03, 2008 05:42 AM

Okay folks,

For those of you that have been reading this..............the 100 percent loan that Jane Martin told us about (see above) is going away soon!!!!!

They will only honor till the end of May...............so make yor offers and get going!!!!! This very well could be the last chance for an 100 percent loan for a VERY LONG TIME!!!!!

Apr 08, 2008 04:26 AM

Time to re-group, no more 100 percent loans!

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