We are trying to buy a new home and are looking for 100% financing

Asked by Stephanie, Vista, CA Mon Jan 28, 2008

The sales office reps tell us that in the Calif. declining market there is really no such thing. We have the money to pay for our mortgage monthly but only have about 10k to put down...what should we do?? Our outside lender tells us that we will be able to get 100% but others keep saying no, IS 100% avail? We don't want to lose our $ by putting down a deposit on the house if we won't be able to find a 100% program

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, ,
Mon Jan 28, 2008
The real answer is, it depends. It really depends on your credit risk and your total profile. If you are buying a house for $417K or less, the answer might be yes you can still get 100 financing. However, many lenders have declared a 5% reduction in counties of declining markets. I have seen many variations of this list but overall there are many counties in California that are on the list believe it or not. If you are looking to buy over $417K, your only option for 100% financing is CALFA as Maryann stated. Otherwise, 100% financing has pretty much disappeared for now. I am hopeful that we will see 100% financing come back again in the future. Lastly, pay close attaention to the new stimulus plan which could increase conforming loan limits upwards of $625,000 or more which would incerase the limit for 100% financing. Good luck!
1 vote
Liz Stevens, , Berkeley, CA
Mon Jan 28, 2008
Yes 100% IS available - fully documented income and expenses, and high FICO scores will get it for you - not the cheapest loan, but available. Let me know if you can't and I will recommend someone to you. Liz
1 vote
Nathan Phelps, , Wyoming
Fri Feb 15, 2008
Hey stephanie,
You can get 100% financing assuming full disclosure of your income and assets-10k is more than enough assets. you can have the seller pay for your closing costs with the CALFHA oan too. so you really only need a deposit to get into escrow and plan on getting some of it back if you're working with a good agent and lender(write an offer with a seller credit of 5%) you would have to be a first time homebuyer for this to work or not have owned a home in the last 3-5 years. the loan is currently at 6% for a 35 year fixed mortgage with the first 5 years interest only-a real good loan(my top pick for their product offering). in the event you aren't a first time homebuyer there are plenty of other options for you to obtain 100% financing- the CALFHA is the first route to pursue though. so, your outside lender is right--but make them PROVE IT TO YOU. How? Request a copy of automated loan approval based on the information you provide--this is a fairly detailed document outlining all of the items needed in order for the approval to be valid-at least of few pages. very easy for them to do, also, you should talk to your realtor/agent about the process of how a deposit works--even if financing goes south, you typically have a contingency clause written into any offer to protect your deposit for a given time period, 12-21 days is typical.

good luck!
0 votes
Debt Free Da…, , 85260
Tue Feb 12, 2008
Make sure that you are not in a declining market or you will not be able to do 100%, in a declining market as deemed by fannie mae will give you a max of 95% loan to value.
Web Reference:  http://getprequalified.com
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