100% Financing Out the Door?
Even though the cost is higher, Fannie Mae and Freddie Mac still allow borrowers to finance 100% of their mortgages, but many major private mortgage insurance companies seem to be straying from this tactic.
With the increase of defaults by homeowners on their mortgages, many lenders feel that they have an obligation to protect themselves. Some have already changed their policies requiring homeowners to provide at least a 3-5% down payment with a 650 or better credit score.
Though it’s not recommended, there are still a number of ways to finance 100% of your home. You can use federal loans, grants or even gifts as a form of payment with no out-of-pocket cost allowing you to finance your entire purchase.
While the future of the current housing market still remains speculative, rest assured that many lenders and brokers are not going to allow previous crash markets to affect them anytime soon.
