100% Home Financing Gone Away

Lehigh Valley Home Financing

The plug has been completely pulled on getting a home mortgage for 100% financing. This is across the mortgage industry. PMI (principle mortgage insurance) is no longer available for these loans so mortgage companies/brokers can no longer offer 100% financing to perspective home buyers.

The closest thing to 100% financing is a mortgage for 97% of the purchase price. This was typically only available using an FHA loan but is now available with other loan programs.

Why would you pick one over the other? An FHA loan requires an FHA appraisal which can make certain repairs a part of the negotiations since any reported problems must be corrected before the closing.

If you pick one of the other programs, negotiations are only between the buyer and the seller.

Most of the available loan program allow for 3-6% sellers assist (or concessions). The particular program you are involved with sets the limit and this knowledge is needed when making an offer on a house if closing costs are a concern.