100% LTV Purchase Coming Back

11/14/2017
Comments
  • I will start by stating I never liked the 100%+ LTV loans prior to the crash and I certainly don’t like them now. However, you didn’t once mention that we’ve had 100% financing products we’ve been using all along – VA & USDA. These products have some fairly strict qualification guidelines and perform pretty well. I haven’t heard about a rash of foreclosures on these products yet the customers have no skin in the game either. There will always be foreclosures. The real question is what are the best guidelines to follow to mitigate them.

    Lastly, the larger banks are offering these programs for low to moderate income customers because they have CRA mandates and if they don’t offer them, their CRA audits will not be pleasant. So would they rather pay the fines associated with not helping their local communities or to deal with the foreclosures? In the end the cost is most likely about the same.

    Marc Reneau November 14, 2017 5:37 am Reply
  • Very misleading of you guys. The gift program is paired with Fannie Mae Home Ready 97% financing, where they can get 3% for the down payment plus an additional $3,500 in closing costs assistance. The still need an approve eligible from DU and ratios need to be under 43% regardless if we get an A/E above 43%. And the worst of the worst? There is no asset restriction either but according to your show, there are no people out there with $50k income, 700+ credit and $10k in the bank. Keep scaring people.

    These loans are to help with CRA numbers, so when you did your show that banks must make 56% loans to low to moderate forced by the act, this is what you’re going to get so they meet those requirements.

    MWalker6 November 14, 2017 6:57 am Reply
  • My company has taken a different approach which I like much better. I thought it would be a rock star program, but I cannot get anyone to use the program. We offer a 100% LTV loan, but we do so on a 20 year amortization. We market it as the “Wealth Builder” program and try to market it to the younger generation to help them financially get a quick start for the future. By taking a 20 year loan they hit principal much quicker, and in 5 to 7 years have significant equity to up-size. We do have minimum credit scores, but it is available to everyone. Thus far the buyers that have used it tend to be people that have the money for down payment and simply want to keep the cash on hand or keep their investments rolling.

    Rich Fraser November 14, 2017 7:39 am Reply
  • I saw the Flagstar announcement and it was only for Michigan so I knew it was for CRA credit.

    Eddie Reed November 15, 2017 10:09 am Reply

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