This just in from Sibcy Cline Mortgage.

As some of you may have read in one of my recent posts regarding the future of 100% financing, its true; the days of 100% financing are gone.  However, there are creative mortgage solutions out there.  The most recent were just given to me by our mortgage officer:

Option 1:
FLEX 97 w/3% Gift:
Sale Price = $150,000
Loan Amount = $145,500
Gift = $4,5000
P&I=$849.10 + $116.40 (pmi) = $965.50

Option 2:
OHFA/FHA with a 3% 2nd mortgage
Sale Price = $150,000
Loan Amount = $145,500  Adj = $147,682
2nd - $4,500
P&I=$861.83 1st
$36.94 2nd
$61.53 pmi
= $960.30

Option 3:
FHA/AmeriDream DAP
Sale Price = $150,000
Loan Amount = $145,500  Adj = $147,682
DAP - $4,500
P&I =$861.83 + $61.53 (pmi) = $923.36

As an advocate for not having people be house poor, I want you 100% financers to realize that actually saving for a down payment is going to benefit you greatly in the long run.  If you’re not in a hurry to purchase, start saving now.  Gather 3-5000 down.  You’ll thank me for it later.

If you’re interested in purchasing a home, maybe upgrading from the one you’re presently in, feel free to give me a call.  I’ll give you the straight scoop on what the Cincinnati housing market is doing.

There are rumors in the rumor mill that the days of 100% financing are soon to be gone.   This is not so good news for those that have nothing to put down on a house.  On one hand, it makes complete sense.  If you haven’t saved up even 3% to put down on a house, are you really able and ready to purchase?  Most lenders now are saying no.  However, this is not so good news because the multitude of first time home buyers out there are used to and almost expecting 100% financing. 

These buyers are now going to have to start saving.  According to one of my lender sources, 100% financing is probably going to go away by the 17th.  She said the best alternative they can give right now is FHA with 3% down or its even rumored that FHA is going to go to 1.5% down.  Its too early to say.  But she she did indicate that there are a few other options (tricks in the bag) that may help the no-money-down buyer.  There is the OHFA money to help and the Ameria-dream program is alive and kicking as well…  She said everyday lenders are changing things and its almost too early to say how its going to pan out.

To me, it all boils down to this:

Start Saving Some Money if You Want To Buy a House.  There are costs involved with the purchase of a home that most first time home buyers don’t expect.

1. Closing Costs (can average up to 3% of the purchase price of a home)

2. Down Payment - this amount varies depending on the mortgage program you’re eligible for.

Home Buyers - As you’re shopping around for homes, start putting some money away to help cover the costs.  A couple thousand now will save you a ton on interest in the long run.

If you’d like to sit down for a free consultation and talk about what it takes to purchase a home.  I’d be more than happy to meet with you any time. 

Buyers!  You’ve got to start acting more quickly.  Lock in your rates before they start to creep up!  Don’t miss out!!  Compare to last weeks rates…