We all remember the old "Mission Impossible" theme song I like to call "da -da- dada - da-da-dadda"
In case you don't have perfect pitch while reading it sounds like this :
Okay - now humor me for a minute - keep the Mission Impossible theme playing while you read the rest of this post AND while you watch the video -come on, it's gonna work and it's what I had playing in my mind when I wrote this post so you might as we ll get inside my head no matter how scary it is ....
This past Friday, September 19th the "Today Show" aired a segment by Michael Okwu that I have provided in the video below from the "Today Show" website. Pay special attention to what is said at 46 seconds into the video "Gone are $0 down loans often replaced with 20% down..."
Here we go - click they play button again on the Mission Impossible theme above and then immediately after click the play button on the video below with both volumes up high enough to hear them at the same time- it has a Pink Floyd / Wizard of Oz effect -..
(Pretty cool, right? okay when you have played 50 seconds in you can stop both videos)
Obviously many Americans watch the "Today Show" in the mornings and they believe that they are hearing from experts WHO KNOW WHAT THEY ARE TALKING ABOUT.
Sorry - I did not mean to shout, but come on - Michale Okwu has NO CLUE what he is talking about because we still have several $0 down loans programs available:
1. VA still offers 100% loans based on the Sales Price or Appraised Value - whichever is lower -if the Apprasied Value is lower than the Sales Price you need to renegotiate anyway...
2. USDA Rural Housing still offers 100% financing based on the APRRAISED VALUE- therefore, if your Realtor has obtained a sweet deal for you and you have a low Sales Price compared to the Appraised value you can include your Closing Costs and Prepaid items in the loan as long as the sum of the Sales Price + the Closing cost and prepaids do not go over the Appraised Value.
3. State Housing programs require at least 3% down; however, they offer Down Payment Assistance based on your income and the property's county you are purchasing in AND some or all of the Down payment may not have to be paid back (forgivable)
And finally FHA still offers only 3% down (soon to be 3.5% down payment) loans which is a far cry from 20% down. So there you have it - the media is not always correct in their mission to get you panicked every hour on the hour.
Back to my Title Question: Mortgage Impossible? Not even close!
Your Mission - should you choose to accept it - is to thwart the media's mission to hit your panick buttons by TURNING OFF THE NEWS, LIVING YOUR LIFE WITH THE KNOWLEDGE THAT IT IS NOT AS BAD AS THEY SAY, AND BUY A HOUSE DURING THE BEST TIME TO BUY A HOUSE - NOW! (i did mean to shout that time).
Nice post Brian. My mom would say, "Watch your spelling!" Sorry, your mispelling of property was probably just a typo...Great post, though, you could not be more right about the nonsense that is coming out of all of the media channels right now. I wish someone would make them stop.
Although I believe the media is not much better than politicans, we have to be careful not to get carried away with the 100% loans that are still available. Rural Housing may not fit for most people because of the location of the property and income limits, if you are not a veteran, forget VA, and FHA is so back up that they have no reason to push the limits. So if you are a mildly successful second or third time buyer, not a veteran, Fannie and Freddie are still the only places to go. Both punish those with less than 720 scores by higher fees and that results in higher rates. We still have a long way to go for better loans.
No one can dispute America has serious financial issues but much of the problem is a lack of confidence fueled by the media and NBC is over the top in that respect.
Home Realty Group - We do have a long way to go for better UW guidelines; however, these loans programs are still available for 100% financing - the restrictions you mentioned for Rural Housing and VA are the same restrictions they have always had: VA -gotta be a Vetrean and Rural Housing Income and property limits .
As for FHA, since we are the Lender we aren't backed up and can still close in plenty of time -in fact FHA is still our hottest loan right now since it only requires a 580 score or higher.
I guess you just missed the whole point of my post: The media wants you to believe that it is next to impossible to get a mortgage loan without 20% Down -The truth is they are wrong and are just getting their viewers panicked enough to not even think about buying a home right now - which hurts all of our business. I'm not fussing at you - I'm just confused to why people believe everything they see and hear from the media. :D
Bill -Thank you. Exactly my point.
Jimmy - Thanks - we do a lot of VA loans also since Fort Jackson is the training facility for the Army.
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Nice post Brian. My mom would say, "Watch your spelling!" Sorry, your mispelling of property was probably just a typo...Great post, though, you could not be more right about the nonsense that is coming out of all of the media channels right now. I wish someone would make them stop.