100% Financing going away?

Here is a quote from a recent e-mail I received from the decision makers at a large subprime lender:

“At about 10:30 a.m. (PT), the decision was made to no longer accept any submissions with CLTVs above 95%”

I have been receiving e-mails like this on a daily basis. Such and such lender will no longer do 100% financing or will discontinue their no-documentation program. Guidelines are being revised. Loans you could do in early March you will not be able to do now. That is how fast things are changing.

Those affected are borrowers with marginal credit (640 and below) and needing 100% or 95% financing. If you are self-employed or 1099 and can not verify your income it will be even more difficult for you.

Things are not so bleak though. There are government insured loans which can help. Most brokers/bankers forgot how to use them or didn’t want to use them due to one reason or another. So, things are not as bleak as you might think. The key is to work with a mortgage planner who knows a wider range or products and place you in the right mortgage. E-mail me directly if you have any questions.

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