Will you ever again get 100% financing when buying a house? Is it still possible to someday have a 0% down payment? Are the days of the 80/20 mortgage long gone?

Today I pull out the crystal ball and predict the future of 100% loan to value (LTV) mortgages.

Here’s more in today’s video:

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(Watch it on your mobile phone or email reader here)

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Will we see 100% financing again?

Yes.

There is still 100% financing available with a USDA loan in certain areas of the country. They have some geographical and income restrictions but they are still doing it.

However, I think most people are really wondering about more conventional financing. Will we ever be able to put no money down for a conventional Fannie Mae or Freddie Mac type mortgage in the future?

No.

I don’t see 100% financing coming back on a conventional loans anytime soon. Those types of loans have a level of risk that investors don’t like. If equity is on the down turn in a certain area and you buy the house with no money down, the day after you buy it you are upside down on your house. Obviously that is not a good risk for any investor. If the government had its way, everyone would have to be putting 20% down on every mortgage.

Let’s be happy we still have FHA with a 3.5% down payment and only 5% down on a conventional loan with a 680 score. I personally think it is good to have some skin in the game. It makes it less likely for someone to walk away from their home and add to the foreclosure problem we already have. Thanks for the great question Sydney!

Also, the $100 gift card is still available since nobody has stumped me yet with their question. Keep them coming, I’m having a ton of fun with these questions! I am amazed to see how many mortgage lenders are watching the show. That’s great to see. Make sure you are giving the rates and costs I am talking about to YOUR clients. If your not, they may be sending you my video and asking you why they aren’t getting these rates.

Rates were flat today in general, but we did see an improvement in the 15 year mortgage rate today. Mortgage Bonds are trading higher today and recouping all of yesterdays losses from later in the day. There was some weak economic readings this morning which also helped mortgage bonds. Lets hope we can hold on to these gains.

Today’s rates with NO lender fees are 4.75% on a 30 year, 3.875% on a 15 year and 3.125 % on a 5/1 ARM.  Get the details and other rates I found today with NO lender fees.

Please don’t forget to share today’s episode and let’s change the way people shop for a mortgage…forever!

See you tomorrow!!

– Mike

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