100% Financing Will Continue to Be Available

Last week it was announced by the various mortgage insurance companies that they were going to end the insuring of 100% financing across the board.  We are pleased to report that a few of the lenders that we work with have been in negotiations with the MI companies and have successfully stalled the elimination of the 100% products.  As a result, we will continue to offer Flex 100, MyCommunity 100, etc with credit scores as low as 620.  Additionally, we are still able to offer 80/20 and 75/25 piggyback loans to borrowers with credit scores of 720 or greater.

At this point, the implementation is going to be on a lender by lender basis.  Some will continue to offer these products, some will not.  As a broker, we will follow the money and ensure that we are able to offer 100% loans for as long as someone is still offering it.

While this is great news for the short-term, the long-term trend is obvious:  Credit is continuing to get tighter.  Any buyers who need 100% financing should be aware that these products could be pulled at a moment’s notice and they should work as quickly as possible to secure a signed purchase agreement.