Archive for May 13th, 2008
VA Home Loans…The Last Real 100% Purchase Mortgage – - – By Paul Proffitt
Posted by: | CommentsThe mortgage melt-down started with 80-20 home loans. Think about it- If you take a person renting with fair or poor credit and then give them a home with no money down you are lending with no collateral. If the property values declined and the adjustable mortgage rates rose – What would be the motivation for this 1st time homebuyer to stick it out? We know its not the down-payment, because with 80-20 loans there is no down payment and no mortgage insurance. The bottom line is that home values dropped and the variable interest rates rose…Of course most of these 80-20 borrowers bailed out and the foreclosure epidemic arrived. Needless to say that 80-20 loans has disappeared.
The only true 100% home financing left is the VA home mortgage loans. You need to be a veteran and the mortgage rates are low. The VA funding fee is only .5% and borrowers can buy a new home with no money down. like FHA underwriting, the credit scores with VA mortgage loans are not as important as income and job history. Veterans who already have VA loans can do streamline refincing up to 100% as long as they keep the new mortgage rate and term. If Vets want cash out theu can refinance up to 90%.