I know what you heard on the news ... I heard it, too. Once again, the media uses one source and misrepresents the truth by omission. It may be true that if you go to some of the largest banks in the nation you have to have 20% down to purchase a home. However, many lenders still have plenty of resources available to qualified buyers up to 100% financing. Yes, I did, I wrote 100% - which means no down payment.
But Ken, those loans are dangerous!
Sorry folks, the loan is not dangerous. The borrower may be but the loan is not. These loans are issued through the new, improved, Fannie Mae guidelines with a piggy back 5% to 8% from one of the most reputable PRIME BANKS in the nation. The second is fully disclosed and insured and the first is a prime loan. The borrower really needs to have a 680 middle score (average in the United States), a steady job history, at least 3 months of liquid reserves, and income to support the loan with a 43% DTI (can go a little higher with bigger reserves.)
Property does NOT have to be rural like the USDA loan. This is not FHA or VA. Property DOES have to be in move in condition. Property can be a warrantable condo.
Contrary to popular belief making a huge down payment on a home is not always the smartest decision for every buyer. Small business people, for example - who may be about to come under massive social government onslaught, need to hold on to their reserves as much as possible to fund their increasing costs of doing business. Retired people may need their reserves to offset major medical expenses.
The key is the people who get these loans deserve them.
These loans are currently available for 100% financing in Georgia and Florida through my Novation Mortgage. 866-946-0120 (only Georgia and Florida for these loans)
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VOTE VOTE VOTE VOTE VOTE - on the ISSUES not skin color or sex.
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THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.
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Copyright©2008 Ken Cook. Georgia and Florida real estate investment loans, FHASecure and FHA Home Loans, nationwide commercial hard money and small business loans, non-recourse loans for real estate investors
Novation Mortgage, 2501 E Piedmont Road, Suite 201, Marietta, GA 30062 Georgia Residential Mortgage Licensee 20014. Florida Mortgage Broker Business MBB 0703760 FHA Lender - Equal Housing Lender
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