Sometimes the press gets it right, and other times, you wonder where the heck they "heard that". When I watch www.CNBC.com lately, and I admit to being a news junkie, I've noticed they talk about financing being tough to get for homeowners and home buyers. So let's take a look at that theory.
First let's look at homeowners. So we have the HARP program, which allows borrowers who got a loan out prior to June 2009 AND whose loan is owned (this does not mean serviced - or who collects your payments) by Fannie Mae or Freddie Mac, to refinance with little to NO worry about the value versus the loan amount, or LTV (Loan to Value). They allow credit scores and you can even have a late mortgage payment over 30 days in the last year.
There is also the FHA Streamline program with allows current existing FHA borrowers to refinance at today's low rates in many cases with NO INCOME DOCUMENTATION and NO APPRAISAL requirement. Wow, that sounds like the old days.
And how about the home buyer? Surely, we lenders make it VERY hard for them to get a loan. Well you can put down next to nothing and buy a house today - even if your credit score if below 620. The FHA still offers home buyers options to buy with as little as 1% down. If you buy a HUD owned home as little as $100 down.
If you buy a home and you're a veteran...then you can get 100% financing.
If you buy a home in a rural area, USDA offers 100% financing on purchases as well.
And even if you just want a plain ole vanilla mortgage and have good to great credit, Fannie and Freddie will still offer purchase loans with as little as 3% down.
With all these options, its still amazing to me that some of my favorite news shows continue to talk about the lack of financing....I am here COME GET MONEY FROM ME!! I want to lend.
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