Oregon Mortgages

100% financing’s future in the real estate world

I know many people don’t have the best credit, life happens and you have to make a sacrifice so you miss a credit card payment and that kills your credit score that you worked so hard to obtain. Well times are getting tougher, guidelines are getting stricter and yet another blow has been dealt to the real estate community and mortgage community. Now, more than ever, people need to pay attention to their credit report, what their scores are, what negative information is on there and how to clean it up a little bit to prepare them to buy a home.

Currently, people with less than stellar credit are able to get 100% financing through Fannie Mae insured loans. There are 4 levels of an approval that consumers can get.

1. Approve/eligible
2. Approve/level I
3. Approve/level II
4. Approve/ level III

Depending on which category you fall into there will be RATE adjustments as well as MORTGAGE INSURANCE adjustments. Obviously the higher the level the higher the rate and the mortgage insurance you will pay on a monthly basis. Depending on your income you might be able to afford the payment or you might not. That of course is a personal decision, us loan officers can only tell you how much our lenders will QUALIFY you for.

Now Fannie Mae is introducing some adjustments to their programs beginning October 20th, 2007. As of that day if you receive a Level II adjustment you will only be eligible for 97% financing, you would be required to contribute 3% of the purchase price towards transaction. That would be $3,000 per $100,000 dollars of real estate. If you receive a level III adjustment you will be capped at 95% meaning you would be required to bring in $5,000 per $100,000 of real estate.

If you fall into one of these categories and you are looking to purchase a property soon you’d better consult your Loan Officer and either find that property very quickly or start doing some damage control to rebound your credit scores. You are more then welcome to check out my Credit Report Blog by clicking the link or by checking out my blog below. I am always up for helping people improve their scores and assisting in anyway that I can. Feel free to contact me and we can discuss how to improve your scores.