Mortgage Update

Everyday the mortgage industry seems to change and I will do my best to keep you up-to-speed. Starting April 1, 2008, 100% loans are pretty much a thing of the past. The reason behind this is that the mortgage insurance companies are no longer will to take the risk of insuring a home without some sort of downpayment...typically 3%. There are a few random programs out there that may allow you to bypass there but they are rare, one is a 100% loan from Bank of America but is only available to doctors. The general public is pretty much out on 100% loans that include mortgage insurance. There are a couple options:

• If you have excellent credit, you could get an 80/20 loan where the 20% downpayment is in the form of a second mortgage, the rate on the second mortgage will be higher but how much higher will depend on your credit score
• There is a non-profit down payment assistance program that is available. The program has the seller paying 3% of the home's sale price towards the down payment of the home along with paying a $499 funding fee to the non-profit program. This program usually runs with an FHA loan that has lower credit requirements for the borrower and allows up to 6% in concessions from the seller.

If I can be of any assistance or you would like more info on the above programs, please give me a call at 209-9667.