100% financing allowed many home buyers to get into homes in the past few years. With the mortgage markets in turmoil and home prices plunging, banks are having to go back to more conservative methods of lending in order to maintain liquidity.

After March 31st, no MI company including not MGIC, PMI, RMIC, Radian, UG or Triad, will insure loans that have a greater than 97% loan-to-value-ratio. Most lenders have already gone this route and stopped offering these loan products.

With FHA raising it’s loan limits, the best way to get 100% financing for homeowners will be the FHA route with 3% down payment assistance from the sellers.

The market is continuing to correct and loans are going back to more conservative choices. If you need help navigating our current real estate market here in the Salem Oregon area, please give me a call or shoot me an email. I ‘d be happy to help.

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