Mortgage companies can and often do change their commitments as their programs change.
The good news is that there is an FHA program that offers 0 down and 0 closing cost to buyers. Not all lenders make this program available. I have used this progam with a number of my clients and found it to work very well. Please contact me and I'll be happy to refer you to a good lender using it. Bill Hartman

Sat May 24 2008, 10:39

John,

They can change the rules up to and at closing he who has the money makes the rules.

That said you can still obtain zero down financing in todays market.

I recommend contacting another lender or myself .

Fri May 9 2008, 09:40

The bank unfortunately can do whatever they want. Many markets are experiencing a decline in market value and are requiring a down payment. You may be able to get a gift from Ameridream if you get an fha loan.

Tue Apr 22 2008, 11:27

In march there was a lot of lending rules changed and that is probably when you lost your 100% ability. The lender is not obligated to any terms because they just gave you a pre approval and you do not lock anything in with them. Also 680 used to mean good credit, now you are looking at a 720 credit score as good credit. FHA is a good program that sounds like should be a good bet for you, even if you need to put 3% down per FHA your realtor should be able to get the seller to pay you down payment.

Wed Apr 16 2008, 15:57

John,
I would check with a mortgage broker for a second opinion. I have had buyers do 100% financing in the last few months. However lending rules are changing daily and loan programs are being pulled without notice. You maybe better off if you can come up with 3% down (cheaper interest rate, less mortgage insurance). Talk to a good loan officer before proceding. If you want a referral let me know.
Michael Doyle Realtor

Tue Apr 15 2008, 06:56

Unfortunately, its not their decision to not allow 100% financing unless they are going to hold the loan in-house. With Freddie Mac following Fannie Mae and declaring most of Minnesota a declining market, these banks need to get money down in order to sell off the loans they make to the secondary mortgage market. For most everyone, to get conventional financing right now a person will need to have 5% down (with the exception of some first time home buyer programs that some banks offer i.e. Wells Fargo CDMP program).

On a positive note, the last 6-8 buyers that I have sold houses to have used FHA loans. Generally speaking this is a good situation for them. Lets try some reverse thinking and see if we can't get a positive spin on your situation. Some of the FHA loan positives:

1) Interest rates tend to be much more competitive.

2) You can use a seller paid 6% DAP (Downpayment Assistance Program) which will be the same as a 0% down loan. In this situation the seller gives the buyer 3% for downpayment and 3% for closing costs. This works great as long as the home appraises for enough money (which can be tricky as well). There are some other items to note with this product that your real estate professional or loan officer will probably want to discuss with you.

3) An FHA loan is assumable. If interest rates shoot up to 10% and you have an FHA loan at 5.75%, you can sell that loan to a future buyer. Your property becomes much more desireable if a future buyer can assume the majority of their new loan value at 5.75%. And if a future buyer asks for closing costs, it's only $300-500 dollars to assume a loan vs. the 1% origination that it seems most banks want to charge.

Tue Apr 15 2008, 05:29