Are 100% loans still available?
Yes - There are various programs available. VA is 100%. FHA accepts gifts from family members and individuals with a significant relationship as the source of the down payment. FHA also works with various non-profit agencies which offer down payment assistance such as Nehemiah and AmeriDream. These programs do not require the buyer to have any of their own funds in the transactions at the current time. Fannie Mae has eliminated their 100% programs. Some lenders, such as banks, will have what is know as portfolio loans wherein you can obtain 100% financing with a combination first and second mortgage. These loans have special guidelines and will vary from bank to bank.
What is an acceptable credit score?
FHA announced effective July 14, 2008, they will implement their Risk Based Mortgage Insurance Premiums. Their new guidelines will have a slight increase in a borrower's up front and monthly premium if the borrower is looking for maximum financing (97%) and their credit scores are below 640. VA loans do not have credit scores requirements. Fannie Mae (conventional loans) guidelines use the borrowers middle credit score to determine pricing as well as the maximum amount of money they will lend a particular individual. Fannie Mae typically requires a minimum credit score of 620 with a 5% down payment coming from the borrowers own verified bank accounts.
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