Let's Talk about Loans...

With all the gloom and doom on CNN about the availability and types of loans out there, I asked my buddy Sam Lines with Legacy Bank for his skinny.

Here's the localized scoop.

"Honestly, everyone is on a pretty level playing field...pretty much the cream of the crop for conventional.

We still have one MI company that will insure a 100% loan, but the credit score has to be 680 or higher....and, they're not even sure how long that'll last. Some MI companies will not go greater than 97% LTV.

With your first-timers, FHA is really going to make a strong come back. From what I've heard, it doesn't sound like there will be any Conventional Bond money for the foreseeable future...so, we're left with FHA."

Now here, the Conventional Bond gave the buyer 4% to use towards closing costs, prepaids, and down payment, similar to a grant.

The FHA Bond is still available at the 4% (with a 1% fee, so in actuality it's 3% in assistance). This pretty much covers the down payment needed for FHA but does leave the borrower needing to pay their own closing costs or getting seller assistance for those.

Hope that helps clarify a bit as to how much the national "mess" is affecting localized lending practices. The best case for a loan is to have over a 680 (700's is better) and at least 5% for your down payment. For more detailed information, contact me or click the link above to get ahold of Sam Lines.