Breaking News - 100 Percent Home Mortgages May Be a Thing of The Past
March 19th, 2008 Categories: Mortgage and Finance
I have had two lenders tell me today that 100% loans are all but gone. They are advising anyone who is looking to finance 100% of a home purchase in the near future to check with a lender to see how this impacts your individual situation.
It seems the issue is with Private Mortgage Insurance (PMI) providers. As of early this week, the only remaining 100% PMI provider is Genworth. All of the other PMI providers are only issuing insurance for 97% of the purchase price. The word on the street is that Genworth will go to 97% maximum soon.
Another spectulation on the street is that FHA will soon unveil a 100% financing program. The caveat here is the FHA loan limits. Even though they were increased to $259,000 for Wake County, many home buyers have needs above that price point. When you take the move by the PMI providers, and the recent increase in FHA limits, an FHA 100% program makes sense.
As credit continues to tighten, it makes more sense now than ever before to talk to your lender and Realtor advisors early in the process. Give me a call at 919-602-7000 if you are within 90 days of wanting to be in your next home.
