100% Financing All But Gone

With 100% financing all but completely going away by April 1st, you might want to look at FHA and MyCommunity Mortgage as good resources to take the place of 100% financing. Below are some of the things you should know about both programs:

FHA
• 3% down payment
• Down Payment Assistance Programs (DAP) are still available to handle the buyer’s 3% down payment
• Appraisals no longer require unreasonable property improvements (many Realtors are still remembering the nightmares of the past)
• Seller concessions up to 6% (and the 3% DAP is in addition to this 6%)
• Low monthly PMI
• Low interest rate
• FHA has no minimum credit score requirements, but does have pretty rigid ratio limitations
• New higher loan limits recalculated to 125% of the county’s median price, with a limit of $729,000
• Manufactured housing available (double wide only) with 30 year amortization
MyCommunity Mortgage Highlights
• Single family homes only (no 2-4 units or manufactured homes)
• Purchase and term/rate refi’s (no cash out refi’s)
• DU (automated Desktop Underwriting) approved (manual underwriting can be requested)
• 620 minimum Fico (alternative credit-landlord rating, utility bills, etc.)
• Alternative credit ok with manual underwriting
• Interest only option on the 30 year fixed and 5/1 arm (not on the 7/1 or 10/1 arm)
• 41% total DTI (debt to income) ratios allowed
• 45-50% total DTI if the borrower is a teacher, police, firefighter, or public health worker
• 2 months reserves requirement if ratios are greater than 41%
• Mortgage insurance factor is .59% on 100% LTV (this is really low for 100% LTV)
• Expect to pay .5% over the regular 30 year fixed rate, higher still for interest-only
There are still a few banks that will offer 100% loans, but the numbers are dwindling every day. Contact us today at info@eraexecutives.com to find out what your options are for purchasing your next home.