100% Financing! What are home buyers options?

pretty strict these days to get 100% financing.. I look forward to seeing what comments people leave.

From what I understand, it is tough to get 100% financing.  Sometimes with FHA, people can get the Nehimiah program, if that still exists.  The mortgage market changes all the time and it is hard to keep up with it!

Elizabeth & Justin -

Here in Chicago, there are a few City Contribution Programs that pay closing costs and can have the effect of a near 100% loan - but not like a couple of years ago.  First time home buyers only, with income ceilings.

The State of Illinois offers some grant programs, similar in nature - again for first-time buyers.

VA is 100%, but only vets qualify.  Unsure of Neimiah is still around, but conventional FHA requires 97% down, although MIP is required, annual premium payable separately or rolled into the financing.  FHA loans get around the zip scoring that PMI companies and many lenders use, but repairs may be required here.

I'm sure there are others, and new programs, perhaps government-sponsored, will be developed.  Get friendly with a quality loan officer to keep up with the latest available programs.

DEAN & DEAN'S TEAM CHICAGO

I don't know but this is a pretty good question.  I know that the Nehemiah program is still hot for dP assistance.

I am working with two investors. They haven't agreed yet, but I think they will.. The plan is that the buyers pick out the home, The investor will buy it and either sell it to them and carry the mortgage, or sell it using a contract for deed. In either case it will work pretty much the same way. The investor will raise the price and charge interest on the new value. The assumption is the the buyer cannot buy a home themselves because they lack one or two of the following. good credit; a downpayment; low debt to income ratio 

Heres an example of how it might work.  the investor will pay 90k for a distressed home.put 10k in it to fix it up and sell it to the new homeowner at 150k at 7% interest.  and a 5 year baloon. which works out to over a double  in five years.(thats better than 20% a year compounded. If the investor has a line of credit or some other way to finance his $100000. and we assume he can borrow at prime (today 5.25%) he will make over $75000 in three years with none of his own capital invested

A few years ago subprime mortgages originated by Countrywide and others were sold to wallstreet where they were sliced and diced and packaged into CMO's that were sold to investors. Im suggesting we cut out the middle men and bring the buyers and the investors together directly.

For buyers, I think that FHA + DP assitance is the way to go.  The only real glitch is that the home must appriase for the total price including the down payment assistance.   I have heard that some lenders are now also requiring that the the contract price not be over the list price.

Local banks sometimes have 100% financing deals, especially if they're already customers.  Around here, the most aggressive real estate lenders are the local/regionals.