I'm still doing 100% financing in the Great State of Texas!!!
I got a call from a realtor on a deal we were working on together. She asked all of the usual questions about what I have done and what she could get for me to smooth this deal. Then came 'THE question".
"Is there going to be any problems with the "100% Financing"? <= I get that one a LOT!!! LOL
What a lot of people do not understand is that the people who 'NEED' 100% financing are more affected by the recent tightening of guidelines than people who 'ELECT' 100% financing. This borrower could have put down 5-10% if they chose, but wanted to reserve their cash until their other house sold.
I still do more 100% financing for Texas Purchase Loans than any other deal. And there is nothing 'dicey' about them. Full approval requires an underwriter's review of income and assets, but the conditional approval is just minutes away with Automated Underwriting.
Still nervous about those 100% financing deals on your listings? Then learn what to ask.
Brian Brady, America's Most Opinionated Mortgage Broker wrote about this. Even did a podcast about Realtors Prequalifying Buyers.
1. What type of loan is this? Conforming? Alt-A? Subprime?
2. What conditions need to be met in order for the borrower to get this loan?
3. Are the debt ratios well within lender's guidelines?
4. Has income been calculated?
I am sure there are lots more questions.... I bet 'ole Brian can think of some.... because I need to publish this and get back to work.
Tom Burris
DallasLoanGuy.com
Dallas, TX
Texas Home Loans
"A Home Loan for Every Texan"
http://www.dallasloanguy.com/
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