I have been in touch with several mortgage officers since licensed 6 years ago. It seemed every officer had a different story. Yes, there is 100% financing for buyers. No, there is no 100% financing.
Well it came down to this week...No, there is no more 100% financing. They are saying that is a loan of the past and it will be awhile before we see it again. The USDA Rural Development Loan was the best product I have seen in a long time. 100% financing with no money down and no PMI. It was a great deal for my buyers. Especially in the market I work in. I live in a small town that has tons of new development and a great school district everyone is fighting to get into. So losing this loan was a great disappointment to me and my first time home buyers.
Today buyers/clients are having a hard time saving. Well who isn't? Saving for the down payment for their dream home is now a thing in the past also. However, I heard some great news today. There might be a stream line loan coming and the Feds are deciding on it on Thursday of this week.
I am not sure how everyone feels about this; but 3.5% down to some buyers/clients can be someones life savings right now. Being that the FHA loans are now less than a 5% interest rate even though they are asking for 3.5% down the credit score requirements are only 580. Being that the credit scores used to be at 620 it is great to see them drop.
For our buyers/clients it is a great time to buy. I have even seen sellers buy points down on loans for my buyers. I can not stress enough to everyone....."For every dirty little house, there is a dirty little couple." (I am not saying your home is dirty nor you, its just a figure of speach) The time is now to buy and sell. Get ahead of the game in 2009.
Make it a great year.