100 percent financing?

Question

100 percent financing, is it extinct? I heard the mortgage association is cutting down on this type of financning and I want to buy a home and I have little money. Now its is gonna be much more dificult for anyone who wants to acheive the american dream.

Answer 1

it is going to be tougher to buy with no down, however we needed some stops. Mostly the bad credit people who never had any reason to buy a home are the ones that will be held back. If your credit is good, and you have decent income, you should be able to buy with no down.

Answer 2

The current mortgage argument has more to do with lenders who provide loans to people who have credit scores well below 600 and don't have any funds for a downpayment.

Talk with a mortgage broker and let him/her tell you want you will qualify for. And, if they offer you financing in an amount that is too high for your comfort level, look for a less expensive house.

If you're married, don't go for the house that requires both incomes. This way you have an affordable home, still have the interest and deductibility of a mortgage, and won't wind up sleeping out doors if one of you loses his or her job or becomes disabled.

Answer 3

I think it is still possible to get 100% financing. In fact I think they are talking about making primary mortgage insurance deductable so that you don't neccessarily have to get a 80/20 loan. They are more cutting back on lending to people with really bad credit or loaning money to people that can make the low introductory rates but won't be able to pay when the payments go up.

Answer 4

You could try to get an 80 percent bank loan and try to have the seller carry a second mortgage for the remaining 20 percent. In the slowing real estate market more sellers are offering incentives and you could include this creative financing in the terms. best of luck

Answer 5

Yes it is still possible, yet not as easy as used to be a year ago. Guidelines have changed. You may need to do some research. Ask your qualified mortgage professional about different finance options.

Good Luck

Answer 6

no way is it extinct. you wouldn't believe how many lenders will take a no money down deal and fully fund your mortgage. the reason is that americans were able (i kid you not: when i was in grammar school, we actually and really were ABLE--and the teachers taught us this--to SAVE almost a full 1/4 of our NET, not gross, income)!!! the remaining 3/4, they said and it was true, would be divided like this:

1/4: housing expense

1/4: utilities including telephone

1/4: all other expenses: food, clothing, entertainment (and boy, there sure was disposable income for entertainment back in the 60s and early 70s--because then, men got paid much, much better because women had not then entered the workforce, thereby reducing the man's pay).

can you believe this??? well it was the truth, since i lived in that time and i can attest to it.

SO NOW, everything is changed: the lenders know this. the lenders take zero down mortgages because they know that unless the people are already selling a house that will net them x dollars at closing, most buyers these days have poor credit as well as no cash saved.

here are key elements:

1. can you pay the mortgage? it will be, for a single family, detached house (not a condo/condo run townhouse), the so-called PITI of a mortgage:

a. Principal
b. Interest
c. Taxes, real estate that is
d. Insurance, homeowner's insurance. (buy more than what the lender requires to cover YOURSELF, not only the lender in case of losses).

to which, on a no money down deal, you have to pay private mortgage insurance (a/k/a PMI). that is calculated at .005 of the mortgage. usually, you have to pay one year up front and then 2 months escrow of it at closing, but there are ways to get around that too.

(in condos, the "I" at the end is replaced with an "A" for assessments)

2. if you have a low FICA score, like most americans do these days, that means that you should clear up your debts before you buy. but that's only if you CAN.

since it is the best buyer's market now for the past 50 years, you should BUILD WEALTH via the purchase of your home asap!!!

if your FICA score is bad, you can still do a NMD deal, but interest will be higher, or, you or the seller might pay one point (one percent of the mortgage amount) in order to lower the interest by 1/8%. you need a very experienced buyer's broker (they do not charge you money, but they expect you to be loyal to them since they do not get a dime for their expenses until your deal closes, so don't screw a good one please) to do this on your behalf.

3. are you a veteran of the armed forces? if you are, call the veteran's administration in order to get your "entitlement" papers before you shop for a house. you will tend to pay a little more for the house because the seller must help you buy if there are "points," however, then what you end up paying extra for is outlined in the contract as personal property like a refrigerator and stove, washer/dryer, etc., being paid for to the seller in exchange for the help he gives you to buy.

after you go through the prequalification and then get your "preapproval letter," bring it to an experienced, not-selling-one-trillion a year Realtor (r) (they don't listen to you because they do not have the time), but one that will especially explain "agency" to you to your satisfaction. that means how she will act in the case of a buyer's broker (free to you), or a dual broker and what she owes to you as either one.

stay with your buyer's broker. try to find one that will sit down with you AFTER she has spoken (give permission) to your lender to know what she has to work with ($$$) for at least one hour. remember: she is getting not one dime for every expense she puts out on your behalf until your deal closes, so stay loyal! if she works hard for you, do not go into an open house and buy from the seller's agent: they can tell all your negotiating tactics, and they will try to get them out of you, to the seller, because they represent the seller.

if you were my buyer, i'd be able to state all i have to say about this most essential decision, because if you do not do this the right way, with your own interests protected above those of the agent, you lose. it's your money, it's your life, it will be your house. get a buyer's broker after your mortgage is aligned and promised.

if you have a specific question or are close to my market area, reflected in my screen name, feel free to write it out to me at my email address that is given to you on this profile.

have a happy buying experience, build wealth!

Answer 7

Brandon, you have stunning credit, enormously mutually with your dad co-signing, yet you will purely might desire to shop around and notice what rates of activity your lenders are offering. propose you pass on line and consider all of the main lenders and the distinctive smaller lenders on your section, locate out which will provide you like and pass from there. Many banks and credit unions submit their rates on line. constantly study the advantageous print -- are not getting caught with a varible fee own loan except you intend on merchandising out speedy. This probable isn't the wonderful place to be inquiring for the going fee . Any grants from this communicate board may be suspect, as i might think of it would violate the regulations. Regardless, superb of success.