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100% financing is going away

By
Mortgage and Lending with Absolute Mortgage

The only true 100% financing left will be VA. 

FHA is still at 3% down payment.  This program allows 6% to come from other parties.  So the 3% down payment and the closing costs can be covered through seller concessions. 

All other first time homebuyer programs will be with a 3% down payment.  Most of these products have a maximum of 3% that can come from the seller to cover down payment and/or closing costs. 

 

Product Updates:

 

·       Effective 3/31/08 the Flex 100, My Community Mortgage 100%, and Home Possible 100% are being discontinued. The MI companies will no longer insure these products at 100% LTV.

·       Due to MI restrictions maximum LPMI is limited to 97% LTV.

·       The Stated Income/Stated Asset program is now limited to maximum 90% LTV.

Jerry Wright

 

Show All Comments
Jeff Payne
The Payne Group at Keller Williams Success Realty - Panama City, FL
Panama City Real Estate
We do alot of Ameridream FHA financing as well as USDA Rural Development loans.  Do you see them going away?
Mar 20, 2008 12:07 PM
Kimo Stowell
HI Pro Realty LLC RB-21531 - Honolulu, HI
REALTOR Associate® RS-76763 - Honolulu Hawai'i

Ykes....

The easiest and only way to make serious money for many is through Real Estate. Thanks to those overly ambitious money mis-managers at Bear Stearns and other investment Co's of their ilk, we the non-billionaires will have to pay the price by selling our completly devalued realestate for nothing because thats what the dollar will be worth. It's the dawning of the Hard Money Lenders...

Mar 20, 2008 12:51 PM
Jimmy McCall
JimmyMcCall.com - Cunningham, TN
The Ex-Mortgage Consultant
Jerry,  It is a great thing to be a lender living in a military town right now.  The VA still has credit issues but at least it is 100%  LTV.
Mar 20, 2008 02:30 PM
Jerry Wright
Absolute Mortgage - Marysville, WA
MLO 181458
No the down payment assistance is not going away anytime soon.  They tried but lost in court late in 2007.  We as Loan Officers and Realtors just need to keep up with all the changes.  I believe the guidelines have reacted too strongly and soon, perhaps in a year, they should ease a bit up. 
Mar 21, 2008 05:07 PM
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