| Can I get a 100% / No Down payment loan? |
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If you are reading this in 2009 and are not, or have not been a member of the US Armed forces, or are not looking to purchase farmland(USDA loans) then the answer is NO. If I can't get a 100% loan what are my other options ? Prior to the mortgage meltdown in 2007, all of the 100% loans where either backed by REIT's, private money, or fannie mae and freddie mac. All of these sources no longer lend on no downpayment loans. Which leaves HUD and their FHA loans to pick up where the others left off. Currently, the lowest down payment option for most of us is an FHA loan, which as of March 2009, requires 3.5% down. Most non-government loan programs are only willing to lend at 90% LTV, so for most people looking to put the minimum amount possible down, FHA is the way to go. The biggest issue as far as FHA goes, is their loan limits, which in some areas maxes out at less than $200k. What about Down Payment Assistance? Down Payment assistance with an FHA loan to cover the 3% down payment has been banned as of the end of 2008. The governemnt finally realized these companies were artificially inflating home values to cover the 3% they were laying out. There is a chance that down payment assistance gets reinstated with the passage of prop HR 600. So who is eligible for 100% Financing? As far as widely available 100% loans there are currently only two types of people elligble. The first being those that are fit the criteria for a VA loan (those on active duty in the millitary or those that have been honorably discharged), the second are those purchasing property eligible for a USDA loan(rural land in certain states).
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