100% Financing!

100% financing is obviously a big deal in the mortgage market! We have been fielding numerous questions on this product lately. Is it still available? How much longer will it be available? Is it harder to qualify for now? These are all valid questions. Some of which we have the answer for and some we don't. 100% programs are still available, but the number of lenders offering them has dwindled. The qualification for this program has changed for some lenders as well. It is harder to qualify with some lenders now as the credit score requirement went up to 680 or above. On top of that a higher rate is offered for borrowers under a 720 score than was previously offered. There are a few out there that haven't changed their requirements, but there is no way of knowing how long this will last! Lastly, there is the question of how long 100% programs will be available period! This is a big unknown. At this point we have not heard confirmation that any changes are being made. However, in this crazy market any change is game! Change can come at any minute and we are at the mercy of the PMI companies, since they are the ones who insure loans above 80%. Any changes they make will be relayed to us through the lenders. If this happens, 100% loans will be gone and we all hope this does not happen. This will knock many potential buyer's out of the market and I cannot see how this is a good thing right now! Lenders have already made all the necessary underwriting adjustments and program changes that are necessary moving forward. It just will take time for them to "right the ship". There is no overnight fix and it seems all sides are trying to find one!
Again, the purpose of this blog is educational and we want to put out what information is out there. It is not our intention to scare anyone off or give the impression there is "new" news out there. This is a topic that has been rumored for quite some time. We have just received more questions on it lately and the rumors have gained more steam. If you are in the market for a home and NEED a 100% program, one way to secure the program is locking in ASAP (if your purchase will occur within one of the available locking periods).

As always we will keep you posted on any new developments!

Brought to you by:
Professional Mortgage Group, Inc.