For anyone on the Realtor side of the business, just a quick update on the 100% financing loans available.  This info might be old news to some of us, but I still hear almost daily from Realtors that they are scared of the 100% financing buyers, and that they have heard about the "fallout in subprime lenders".   Rest assured, there are still lenders offering 100% financing.  Yes, the guidelines are a bit more conservative, but these loans are still available today.  As far as the risk involved with a 100% financing buyer, yes...there are risks, just as there were in the past.  As always, alot depends on the Loan Officer involved.  Is it a good time for buyers to obtain this type of financing?  Yes!  When would you have rather purchased a home in one of the so called "over inflated markets",  today,  or a year and a half ago?  It is one of the most exciting times I have experienced over the last few years.  If you are a mortgage professional, you probably have felt the decline in Subprime lending for 100% or STated Borrowers.  We are all feeling that today, but there is light at the end of the tunnel.  In every shakeup we see inside the lending circle,  what happens next?   The very same investors, wall street analysts, and government agencies that crack down on a specific type of lending,   are the very same group that feel the pinch in their wallets over the next few months.  As always, we will see new programs that come out for these type of borrowers.  Will they be as risky or have such liberal guidelines?  No, probably not.  Think about when the Interest Only loans pulled back with all the lenders,  what did they come up with?   The 40 and 50 year fully amortized loans.  Virtually the same result in low payments, but less risk for the investors.  Just watch your radar.  I am already hearing of new programs and lenders that are offering solutions for these buyers.  How about a 110% loan?  Huge allowances for credits, carrybacks, buydowns, etc. 

One note about loans submitted under Subprime guidelines, and even some Alt-A guidelines.....just because you have the approval, doesnt mean you will get docs.  Lenders selling to the secondary market are changing their programs seemingly daily.  Your quote on a loan scenario last week, may not be even a program they can do today.  Vice versa, I have had a lender stop a program, then start again a week later.  If you lock em, lock a full package/complete package and get to docs as quickly as possible.  Oh, the other golden rule,  have a backup lender already in place.

Do Not Fear the 100% buyer.   Do not bury your head in the sand.   Do not listen to the "doomsday predictions".  Its just a lot of hype.   Just enough to keep you through the next set of commercials, so you hear that story on the evening news about Subprime Fallout,  Foreclosures, etc.