Is 100% financing no longer an option? If it is available and assuming closing costs were covered by the

Asked by Ryan, Chicago, IL Mon Mar 24, 2008

seller (wrapped in the mortgage) would a buyer still need to demonstrate a certain amount of reserves to receive a mortgage?

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agnes donnad…, Agent, chicago, IL
Wed Mar 26, 2008
A lot has to do with your credit score, job history, assets... Nothing is black & white. If you need help, let me know I can refer you to a mortgage broker who can help you. Send me an email at
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Hi, , Virginia
Tue Mar 25, 2008
the good news is that housing prices dropped 11.4% according to the Case/Schiller index.
for a $200K house thats a savings of $22,000
if you are patient, and do not have to buy now, you can get a better deal.
save your money
buy a house in 2009, maybe 2010


good luck
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Jeffrey Kropp, Agent, Chicago, IL
Tue Mar 25, 2008
I believe that Fannie Mae and Freddie Mac still have 100% LTV loans- called My Community or Freddie 100. Of course, this changes every day. This is important since not everyone qualifies for FHA loans and the limits may be lower though this may also have changed.
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Nervous, Home Buyer, 02215
Tue Mar 25, 2008
DCU offers 100% financing on Non-Jumbo loans. The interest rate is higher of course.
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Jim Starwalt, Agent, Grayslake, IL
Tue Mar 25, 2008
I believe you are correct. 100 % financing is no longer available. However, you can go 97% with FHA and ask the seller to credit you 3% for closing costs (that is how you can get 100%). But please consult your lender to verify this.
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Paul Blackbu…, Agent, Chicago, IL
Mon Mar 24, 2008
FHA is your best option. With FHA you can still do 100%. Right now that is really your only option. In most cases you would need to show reserves to cover closing costs, however, if you are using FHA, you could probably have the seller cover the closing costs. Just put it in the contract and you should be covered. Work with a decent attorney and mortgage broker too. I've worked with clients in your situation before. Need any help just let me know!
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