With the mortgage industry continuing to spiral downward the latest hit comes to those looking to finance 100%. Regardless of your great credit and full documentation these products have been pulled off the shelve.

The mortgage insurance companies have now maxed their coverage to 97% LTV. The only hope for 100% financing comes in the form of VA Mortgage Loans for those who Qualify and State Sponsored Programs such as CHFA here in CT, the problem with these programs is that they are limited to those meet their guidelines. CHFA is a FIRST TIME HOME BUYER PROGRAM here in CONNECTICUT and comes with restrictions on purchase price, income and assets. VA Mortgage Loans are great as they offer 100% Financing but have a VA funding FEE and are limited to those who have served the military or are currently in the military and could get a certificate of eligibility. Of course there are FHA DAP programs but those may or may not be around much longer either.

I agree that way too many people who received 100% financing should have never been able to qualify and these are the prople who are losing their homes and caused this mess. But there are some people who have outstanding past credit, have solid jobs and should be able to qualify for 100% financing and now can not get a loan.

On the other hand if people looking to buy a home don't have 3% to put down on a $200K loan which is only $6K, maybe they should not be buying a house, afterall $6K is not asking too much to invest.

This will hurt those on the trickle down effect, Real Estate Agents can't sell homes, sellers can't sell and buy, mortgage consultants and mortgage companies won't sell mortgages and so on down the line.

We are in for a long down market if funding is not avaiable to well qualified buyers.