Bye Bye 100% Financing

As part of our monthly office meeting, we typically have a local lender sit in to give us an update on what is going on in the mortgage arena. Today she said due to stricter underwriting guidelines, buyers are not going to have the 100% financing programs available to them as they have had in the past. Conventional and FHA loans are now going to require a 3% down payment. Gone are the days when you didn’t need any money to buy a house. Go figure.

If you’re a buyer and you were qualified for a 100% financed loan a couple months ago, you better check the status of that availability with your lender. It may not be there anymore.

If you’re a veteran, VA backed loans are still available for 100% financing. And, there is FHA down payment assistance programs out there as well, just make sure to check with your lender.