Can I still get 100% financing?
“Tear up page one and run this headline”
“100% Financing is Disappearing – Fact or Fiction?”
I recently blogged about a potential change involving 100% financing. As we all know from last year, using 1st and 2nd mortgages for 100% financing has all but disappeared. We could be seeing the end (at least temporarily) of 100% financing for loan programs using mortgage insurance.
Why? Some mortgage insurance companies updated their guidelines for Georgia, and will now only insure mortgages up to 95% loan to value (LTV) – effectively eliminating 100% financing. Lenders will respond tot his decision by discontinuing their 100% financing programs.
In fact, last week some investors have already “unofficially” declared Georgia as a declining value market and have reduced loan guideline LTV’s by 5%. This effectively makes 100% financing, 95% financing. This change has not taken hold with all lenders, but be aware that this is a real possibility.
Given a situation like the one mentioned in this post, this is another advantage to being a broker with access to multiple loan programs and funding sources. Even though one of the lenders we use discontinued their 100% financing loans, we work with several other lenders who still offer 100% financing.
And on that note, anyone currently looking to buy a home using 100% financing does not need to delay as this loan program could be entirely gone sometime in the near future.
More to come as this story develops…
Clay Jeffreys is a Mortgage Consultant with Hillside Lending, LLC and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.” Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing. For more information about available programs and interest rates, please visit www.hillsidelending.com.
