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100% FHA Loan - Call me now!!!

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Mortgage and Lending with Primary Residential Mortgage Inc. NMLS 38783

Okay, got your attention right, well this is B.S.  There is no 100% FHA loan, there is still a 3% required downpayment for FHA loans for purchase.  I have seen lenders advertising new FHA 100% loan, which is bogus.  Countrywide in our area is going to realtor offices and advertising it.

What they are really doing is saying if the seller gifts 3% to a non-profit that will gift the money to the buyer then we have 100% financing.  This has been around for years and is nothing new.  The 3% required downpayment cannot come directly from the seller, so we have to go to a non-profit company.  FHA requires the company to be non-profit.

So if the seller doesn't agree to giving the buyer the 3%, then this option will not work.  So beware of people advertising 100% FHA loan.

John Thomas - Citizens Lending Group - http://www.DelawareMortgageLoans.net

 

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Annette Akey
Prudential Starck, Realtors® - Carol Stream, IL
CNC, GRI, SFR

Hi John:

Actually if the Expanding Homeownership Act of 2007 (H.R. 1852) passes the Senate there would indeed be a zero down FHA option available.  This Bill passed the House earlier this month and now sits in the Senate Committee on Banking, Housing, and Urban Affairs.

I have seen mortgage companies in anticipation of this Bill being passed starting to take applications for it.  But you are right in that it currently doesn't exist without some sort of non-profit contribution.

Annette Akey

Sep 29, 2007 07:36 AM
John Thomas
Primary Residential Mortgage Inc. - Newark, DE
First Time Home Buyer Expert

Hi Annette,  You are right on with the bill but it is a long way from being law and from any bank being able to offer the program. Even if it goes thru the senate it has to go thru unaltered for  it to go on to the president.  if it gets changed , it goes back to the house, so you can see it is not something that happens very quickly and our congress is slow!!  I just wanted to point out the false advertising that is going to be coming out.

Sep 29, 2007 02:08 PM
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Delaware Mortgage loans for the purchase or refinance of homes in Delaware. Advice on Delaware mortgage rates and loan programs. Delaware FHA Loans, Delaware USDA loans, Delaware VA loans, and Delaware Reverse Mortgages. John R. Thomas is the author of the book, Your Guide to Buying Your First Home in Delaware.

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