Announced today, fannie mae and freddie mac, the largest buyer/servicer of mortgage loans announced the discontinuation of 100% financing options through conforming products. This move will require home buyers to put a minimum of 3% down payment into a new home purchase. From my last post, you must have a 680 fico to be able to get into the 97% conventional loan.
100% fianancing is still available for all credit scores using one of the government insured program - VA, USDA Rural Development and FHA with use of a non profit gift. Need more info on these great programs, contact me for free information and reports.
In today's mortgage world you must speak with a lender that offers all of the programs available to the market.
I was told twice just this week from potential clients that going for an FHA loan had too many property restrictions. When asked where they heard that from the answer was other brokers. Turns out these brokers do not offer FHA financing and instead of being upfront, they made up rules that are just not accurate. FHA uses the same exact appraisal as conventional financing these days. When you hear a negative about FHA, VA, state bond programs or Rural Development loans, ask them if they offer them. If they say no, talk to another professional. If you are from out of state and would like some guidance, call me. I would rather help someone analyze their options then see them put into the wrong product even if there is no compensation to me. I am trying to do my part to clean up our industry. Happy Easter!
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