100% Financing for poor credit?? Is this for real? 6%, 6.25% APR???

It is real.

If properly disclosed as a FHA loan with a DPA I suppose. another nice feature to add would be a counter offer quote for what is available so potential clients don't go away angry when they get no reponse to their scenario because lenders are afraid to give options which are not exactly what is requested.

It would have to be FHA with DPA because all the other programs get a hit for the declining market. I guess if you ignore the fact that the 100% program has a 5% hit to the LTV, it would be possible.  I just dont think we can assume someone is getting DPA when they ask for a 100% quote.

Too bad. Please don't jump on the FHA band wagon. Enough yahoos that couldn't do a normal loan right in the first place are ruining it for the rest of us. Get out of the business.

Since the investors were not buying anything under the 580 credit score many lenders changed their own underwriting guidelines, as we are well aware as lenders, to no scores under 580.

For poor credit - anything under 580 can still qualify with my company, but certainly not at 6% that is impossible. I have lenders currently who will do loans with scores under 580 - but the interest rates are higher than 6% - They are 7%, 7.5% even sometimes 8%.

As far as 100% FHA, yes that is still available. The DPA (down payment assistance programs) are still allowed to be used on all FHA loans no matter if it is above 580 or under 580 in credit score.

Thanks!

Lindsey :-)

Technically the acronym is:  "DAP" ,  as in:  Downpayment Assistance Program....  

And there are plenty of them out there:  I have had a lot of success with Ameridream, and Genesis Foundation...   The DAP accompanied with FHA is about the best option for a 100% (or close to) mortgage.

I've also recently done a CDMP loan for a borrower which is 100% financing, no PMI, and very little reserve requirements...  The pricing is based off of par rate (I got them 5.875% with 1 discount point)....  The main hitch is the income requirements.

The Fannie Mae and Freddie Mac 100 programs are priced so high they aren't even worth it.

If anyone has questions regarding the REAL benefit to utilizing the FHA loan program with the DAP program let me know...  I closed 5 loans in April that were worked up to be 100% financing FHA loans.

Thanks,

Hey Everyone, I can still do a true 100% loan.  No prepay and no declining market factor.  Minimum fico is 680.    Conforming loan litmits of course.  Must have 1 open trdeline for 24 months and 3 open for 12 months.  This is not a FHA loan!!

www.LendingAndInvestments.com

Can you have them brokered to you and pay on them?

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To lindsey, or anyone who may be able to help for that matter... You say you can approve for less than a 580 fico? My score is up to 512 from 420 last November, I've never had any credit, but I have bad credit from my daughters 11 years of hospital bills. My credit situation is certainly explainable; I didn't go on mass shopping sprees. I would miss work and lose my job because she was in the hospital. People say you can't get fired for your kid being in the hospital, BS! I finally found a job that wouldn't fire me and stayed there for 6 years, but I only made $4,500-$5,000 a year. Two years ago I got my job now (dropped out of heaven!), and she has FMLA now so I can't get fired. We have health ins. and I now make $40k a year. I accept the fact that I chose to have the kid with medical problems, bringing on my own credit problems and now have to have a higher interest rate. Hell, I'd be happy to get approved with a 10% rate! But I can't even get approved for anything. I'm paying my bills now, and the house I was looking at was only $39,900! But no, unfortunately my house sold last week after watching it sit on the market and being able to do nothing for 5 months, so now everyday after work I get to drive by and watch the flippers tear up my dreamhome!

Down Payment Assistance  same as above.