Wednesday, January 9, 2008

The Death of 100% Financing...

100% Financing is on its deathbed. I predicted this in a past blog a few months ago (click here), and I hate to say it, but we are returning to the world of a minimum of 3 - 5% down. Speaking with my go-to loan officer the other day, it appears that the zero-down programs of yesterday are all making the migration to 5% down starting on January 15th, which is the end of next week. That's right - if you have not closed escrow on your loan by then, your zero-down program will sunset (no longer be available).

If you meet certain qualifications, you may now be able to qualify for an FHA loan, with a 3% downpayment...There was a Senate Bill earlier this year that was attempting to change the FHA required 3% down to 1.5% down, but I do not believe that went anywhere.

Marlena found one program that offers an 80-20 scenario with pretty decent rates and terms that will not be going away abruptly January 15th, but who knows just how long that program will be available...

If you want to purchase a home with zero down, you'd better act fast - or start saving your pennies. If you want to talk to Marlena Olson with the Vitek Mortgage Group, she can be reached at 916-486-6900.

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