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I'm assuming my credit score of 743 should pose no problem with me getting an 80/20 thru another lender.
Thanks for the info, ELender.
Are you sure you want a 80/20? Maybe a single loan is better for you? Did you have a house in mind? What is the city/state/county so we can look for other programs for you? Would you mind sharing your household income yearly?
You are assuming correctly...
ELender when you say "we", who exactly are you referring to?
From where you are, you can tell what's available in all states? My sister in law is looking into buying soon too and I was thinking she could find out a lot about it here if that is the case. I guess that it is area specific.
Oh and they were thinking about 100% financing but I am thinking that would not be such a good idea for them.
I search Florida and know some of what is available in other states, our guides have listings of all approved down payment assistance programs for pretty much every state as well. I sometimes don't have time to look them up but the rest of the guys here are pretty capable as well...
US Bank will still do 100% in a declining market....
Funny you say that, my mortgage was sold to US Bank
Quite a few investors offer "100%" financing - Until they slash the appraisal after review by 5 to 10%...
Buyer beware - DO NOT waive your appraisal or loan contigencies too soon...............
And do not forget about the #1 requirement of 100% financing - Unless you use FHA/VA - You will need to prove you have enough cash reserves.
With the FHA/VA exceptions - 100% financing is NOT an option for clients with zero dollars in the bank. And it shouldn't be...
Thanx, D
FHA doesn't require reserves and neither does VA. Neither does Rural Housing. There are plenty of loans still out there with high level LTV that get done. There are plenty of those loans that close. All three of them don't have to deal with soft market issues either.
Elender is correct, 100 financing is still available right now under the right conditions.
Elender, I'm in the process of closing on a house. I have a mortgage broker. He is telling me we will need to go the FHA route which I do not have a problem with. However, he has been holding off because he keeps saying the rates have been improving. I still cannot confirm if this is true or not; I don't know where he is getting his data from.
The house I am purchasing will cost 107K. The seller has agreed to pay 4K in closing costs. The house is located in Dallas, Texas in Denton County. Annual household income is 42K.
Tekmoe, are you aware that FHA requires a 3% down payment? It can be funded by the seller through a non-profit, known as a DPA (Down Payment Assistance) Program, but all FHA loans have a statutory requirement of 3% into the transaction. FHA loans also include mortgage insurance and an upfront MI fee as well. Make sure you get FHA specific disclosures from your broker.
As stated, 80/20 are just about done. It is a very bad loan. Find a way to get a FHA loan (became easier today with the rise in limits) and get it done that way. Stay away from 80/20
Tony Grego - Indiana Mortgage Broker
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100% financing going bye-bye?
tekmoe
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I read an article on a mortgage brokers website saying several companies such as MGIC, Radian, and PMI, have lost billions of dollars due to all of the foreclosures. Because of this, they are beginning to not insure high loan to value mortgages unless the buyer has extremely high credit scores and/or some down payment. These changes are said to go into effect on March 1st.
Anyone have any further information regarding this? I'm in the process of buying a home and was going to go the 80/20 route but it's not looking very clear at this point.
Article Link: http://activerain.com/blogsview/391860/Freddie-Mac-Is-Making
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