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Kelly Putz's Blog

By Kelly Putz | Agent in Washington, DC

Are there 100% mortgages still available?

These were available everywhere during the frenzy of home buying just a few years ago and, for the most part, they went away. However, there are at least two still available to most home buyers, whether you are a first time buyer or even if this is not your first time at the rodeo. There are at least two programs I know of that not only do 100% mortgages, but can go as high as 115% to include closing costs.

The first is a program financed by the USDA that will allow a home buyer to purchase a home with no money down and not-so-good credit, but not in urban areas. It has to be a rural area, towns with a 20,000 or less population with some exceptions, and the buyer would have to qualify by having income at, or less than, the median income for that area. That's the bad news. The good news is, that there are LOTS of suburbs of urban areas that qualify as rural!

For example, all real estate in Loudoun County Virginia, with the exclusion of the city of Leesburg, qualifies for this program - where, the last time I checked, the median salary was around $110,000. This includes Sterling, parts of Herndon, Ashburn, Dulles, Purcellville, Waterford, Hillsboro and Lovettsville. Most of Loudoun County is considered a suburb of DC because the commute is not far. If you already work in one of these areas, it makes sense to try to find a home there, especially when you can still get 100% financing. You would need to find a local lender to handle the USDA mortgage for you, because big banks in metro DC do not do them - at all. If you want to do to the paperwork yourself, you can get a mortgage directly from USDA without even using a bank, but if you have at least a 620 credit score, use a bank. It's a lot less hassle. If your credit score is terribly low, you can still qualify. USDA just needs you to prove ability and willingness to pay.
Here's their website with lots of info: http://www.usdaloan.us/faq.html

The other type of 100% mortgage is only available to military personnel, the VA loan. If you are military or are retired with unused VA mortgage benefits, you don't have to use a lender recommended by or associated with the military, you can use any lender who works with VA loans. I have often had VA clients who switched from their military recommended lender to mine, because their lender made the process difficult.

If you have any questions or would like to contact one of my lenders about either of these programs, please feel free to drop me a line or give me a call.

:)

Kelly Putz
Keller Williams McLean-Great Falls

Realtor® in DC, Maryland and Virginia

 

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