Credit unions offering 100% funding.
VA loans offer 100% funding, with closing costs rolled into the loan.
USDA offering 100% funding, for rural areas. "Rural areas" is loosely defined, and some very suburban areas qualify.
Can't get one of the 100% funding plans?
Shucks. Find 3.5% of the purchase to put down, and go FHA. If you qualify for the up to $8000 first time buyers' tax credit, file an amended return and collect the $8,000.
Now FHA is talking about letting you use the tax credit for your down payment, monetizing the credit at closing, in a bridge loan, until you file taxes.
We were warned in real estate licensing classes about being creative to "get around" obstacles.
Seems like a lot of "getting around" is in the works.
Will "getting around" get us out of the current financing morass?
Here's one skeptic.
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The FHA backpeddled on the tax credit for down payment as soon as they put it out.....seems like they need to work on some behind the scenes details before that press conference. Let's face it....26% of the FHA loans that had down payment assistance went into default.
ReplyDeleteThe government wants to lend only to people who pay income tax. Think about it....no more stated income means that small business owners who expense much of their cash flow are shut out of lending.
This policy is why the lower price points are selling like hotcakes and everything over $200K is sitting.
The banks are so busy with refinance requests, they can't take on much more yet. This whole morass didn't happen over night and it sure won't be fixed overnight.
tip,
ReplyDeleteThanks for popping in.
It just gets more interesting every day.
Liquidity issues means I am sitting here sweating two closings for Tuesday, for two clients with great credit.