Lenders Policy

100% financing is still available on the mortgage market. I know you hear all the financial doom and gloom of the press and you would think every lender just closed their doors and went home. This is not a good situation, but it is not as bad as the media wants you to think.

Remember, it is also an election year and every year of the election, both political parties talk about how the economy is bad until we believe. Then one is elected and they save the world ... and the economy. Do you just love it!

Here's a news flash. People are still buying houses. Yes, mortgages are available and everyone should understand that this is the best time to invest or buy a home. (When the price is low.) Have you ever heard the term "buyer's market"? Is what we have here.

History shows that real estate and our economy run in cycles. Back in the 70s and 80s he was a cycle of 4-5 years. You could graph. Then, when subprime loans were forced on lenders (mid to late 90s) by regulation of the Government of the cycle changed. They have become longer and more intense until all took with us and we are here, like it or not.

I do not like it either, but since I'm tired of pointing fingers and blaming, and dreading, and media hype. I do not believe a "bailout" is the answer, but obviously this is not my choice or yours, or we the people's choice. Our elected officials make the decision and base it on "no stronger ground" that you and I want to start our own view.

All right all ready! So do what ever it is ... if we the people can recover and move forward. We have experienced worse times and we will survive and prosper. I think it is in the DNA of the United States. (Sorry, that was really bad) We survive in spite of the people we elect.

If you need a 100 percent financing it is available ... just not in the form of the former no-doc, no verification of subprime loans. You have several options. FHA, VA, Rural Development, or special products based on credit and perfect stability. USDA Rural Development is a product recall or little known.

USDA Rural Development has two mortgage programs: Direct and Guarantee. The program Direct is a mortgage provided directly whether the Rural Development office and your income can be 80% of median income for this area.

The guarantee program is provided by another USDA approved lenders and brokers. This is a guarantee program, there is no subsidy or recovery, and restrictions on income allow up to 115% of median income after special adjustments.

This is a 100% LTV mortgage based on the appraised value, not the purchase price. The credit guidelines are very flexible and the guidelines have no minimum buyer commitment and no maximum concessions vendor. Note: some lender policies may be stricter in this area. USDA always respect the prerogatives of lenders.

OK, so we must all face the failure of our market, roll up our sleeves and go to a better future. Remember, now is the best time to buy in a buyers market!