what’s the general financing loan amount these days? a potential buyer asked if there’s still 100% financing, i said it wasn’t due to the crisis we’re in and that the norm is around 20% down. (i believe i read this not too long ago). the buyer has excellent credit and a decent combined income with his significant other.
anyone want to chime in here?
thanks,
ryan
Ryan, I was going to type this in but its to much for a two fingered typer. In my last Kiplingers personal finance mag. vol.63 there is a good article on Conventional and FHA Mortgage guide lines. Effective Feb. 1st. Pick one up. Herbster
From what I know 100% financing is virtually non existent except for VA loans where they can still finance 100% and pay no MI which is a great option but only vets are eligible.
FHA requires 3% down payment which can be gifted
Conventional requires 5% down and 5% must come from their own funds not a gift.
There are other programs out there that I’m not that familiar with such as rural housing loans which may offer some other options but from what I know FHA is king right now for low down payment loans.
100% is no more, however, 95% is here. Would that help? Buyer will need 5% down cash.
Where is the 5% down? is this on non owner occupied investment loans? Thanks
Ryanpal,
100% financing is still available depending on where the house is and the income level of your borrower. It is called a USDA loan. It is UW almost the same as FHA.
Beyond that you are looking at either 97% with a flex 97 but IF you can find MI for the deal it will be outrageous or 96.5% with FHA. If it were me I would find a way to make either the USDA or the FHA loan work. Conventional financing above 80% is extremely sketchy right now due to MI companies actually UW files after they have been UW by the lender. Hope this helps.
Christopher, You’re refering to the USDA RD(rural developement) loans.
Not a bad way to go but they do come with income limits and as I implyed they are for rural areas only, not inside a major city limits. They do have a web-site stating the income limits and maps of where they will loan to. Maybe USDA.com but if you can’t find it reply back and I’ll find it. Herbster
Here is a link to the website to see if the actual property will qualify. Keep in mind that there are income limitations based on family size.
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11