We truly are living in a brave new world where you can find a Zero Down mortgage up to $2MM aren’t we? Well it’s here. The question is, will it last?
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Zero Down to $2MM? Yep.
admin - Thursday December 10, 2015
One of the most valuable lessons we learned in the last housing crisis is that equity is the one true mitigant to default risk. We have seen a huge up tick in the use of 1st position HELOC’s at high LTV’s to $2 million in our market (Miami) given that they are not subject to QM or TRID.
Frank – great to hear…FRANK GARAY!
wow zero down up to 2M. That got my attention. If this become avaialbe to all realtors and Loan oficers , we will be singing worship songs daily. LOL It does make sense to me if they are paying more in rents and have demonstrated no lates then doing a 100% with a low dti will work. It's just like a VA loan or a 100% with bond programs.
This is the market for that loan to work. I work with people buying $650,000 homes with an FHA 3.5% down in the San Francisco Bay Area all the time. They are millenials who make good money and have not had time to save a big down payment. If I had this loan I could/would make use of it.
I am told that Navy federal credit union offers these conventional loans. From a regulatory standpoint, how can these institutions do this without significant reserves. Since these are Uninsured
I sure wouldn't buy any stock in this credit union. Here we go again……… Have we not learned from the 2005 days……incredibly insane!
Zero down to 2MM??? Sounds like this lender forgets what happened in 2006 & 2007. These are the loans that drive home prices up into the danger zone. No wonder CFPB regulates the industry as they do. Seems that some lenders are on the way to putting America into another crash. In the long run bad idea. If you don't have a downpayment you don't deserve to be a homeowner. Keeping skin in the game keeps the market healthy.
Navy Federal Credit Union has 100% financing.
Hello Frank and Brian,
I’m writing here as I’m not sure the best way to reach you, I apologize for the unrelated post. I was hoping you guys could do a show on forced cross qualifications for purchase loans. I work in San Diego and am a real estate broker as well as a full fledged mortgage broker. I often do purchases where I act as the real estate agent as well as the loan officer.
I’m wondering, is this legal? Because on one hand it seems reasonable, force the buyer’s to reaffirm their approval from their chosen lender. However, it seems likely that this crosses many privacy laws. Not to mention the listing agent can gain an advantage by knowing every single metric of the buyer’s financials while still negotiating a contract to purchase. Often times, of course, the cross qualifying lender also makes a pitch to the buyer for his loan business. Again, this just seems wrong. I have had the cross qualifying lender also include the listing agent on email chains where I am forced to share buyer’s 1003 (including his social and all financial metrics), violating the buyer’s privacy with regards to his social security #, etc.
I would ever appreciate you guys covering this as I’m certain it violates so many privacy issues among most likely many other. I’ve been an avid watcher since the crash days, and I thank you for reading this and considering the topic.
Sean SD Realty
We’ll see if we can do a piece on it Sean!
Sean, I was in lending 34 years and a licensed practicing appraiser for the last 20 with my RE license thrown in the mix for the last 5 years too. I know ohio mortgage loan officer licensing will not allow being a RE agent involved in the loan transaction. And USPAP won’t allow the appraiser to be “biased” in any appraisal reporting either. Which makes for a broad interpretation of what makes us biased? I would think have your mortgage broker involvement in your RE transaction would be interpreted as a conflict…..by the government interpretations. Personally, I feel the more experienced the LO or Appraiser or RE Agent is, the better it is for the client!! I don’t feel I’m biased by having all my experience! I feel I offer a well rounded career of experience and can advise my clients better than most anyone else! What does your state licensing say though?
I don’t know about other states, but I know in Utah this is definitely NOT LEGAL. You can have and use both licenses, but you can’t “double dip” in the same transactions.
Guys, the comment in question was not if it’s legal to act as both Realtor and mortgage officer. It most definitely is in California and those successful in it offer an unparalled advantage to the borrower. I work with mostly military clients, and have about 20 Naval special forces service members that can attest. The issue at question in my post, was about mandatory cross qualifications by listing agents. Sorry if this was confusing.
Navy Fedeal Credit Union offers 100% financing too. San Diego County Credit Union will close a loan without tax transcripts. Credit Unions are the next to implode.