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Marcus Said:

Are any mortgage lenders still offering 100% financing?

We Answered:

If you find one, let me know, but I think you won't find this anymore. I know Wells Fargo offers like 90% financing plus a heloc. This may come to 10% financing but I haven't tried this and not sure (maybe its like 80% plus a 10% heloc or something - and undoubtedly you have to have really excellent credit to get it).

Ryan Said:

When do you think the mortgage lenders will return to 100% ?

We Answered:

I can't see them ever returning to the insane lending that we have witnessed over the last few years. The best help for renters and first time buyers, is to get house prices down to a sensible level. They were way over-priced, and haven't dropped that much. Trouble is, borrow and spend Brown will drop interest rates to zero if he can, to try to support artificially high house prices. The danger then, once Brown's new borrowing dries up, is that many more house buyers will have bought over-priced houses. We then wait for the even more serious, probably terminal crash, once interest rates start to increase.

Long term, excess borrowing will destroy us. Moreover, savers have suffered low interest rates for long enough. Buy to let speculators will be loving Brown for reducing their interest burden at the expense of savers.

Toni Said:

How do Mortgage lenders figure your monthly income if you work on Commission?

We Answered:

Well that all depends on your Credit, down payment, loan type, and how much you have in assets.

If you have excellent credit they may ask for very little verification, like you tell me and i believe you because of your credit. If your credit is good but not great they will ask for two years of taxes and take the lowest of the two years or take an average. With okay credit they will take an average of three years. But depending on the underwriter all this is subject to change.

How Brokers determine what they need is by reading the desktop underwriting results, from whoever they plan to sell the loan to. So it is not cut and dry.

Hope this helps, Good luck.

Darrell Said:

Does anyone know of any **legit** mortgage lenders that are still financing 100% mortgages?

We Answered:

You have to remember alot of the times it is not the company that is at fault but the people they hire are. Too many loan officers can and do their own creative financing. You may want to check out Chase, Bank of America, or Wells Fargo and see if they aren't still doing 100% financing. They are easy to work with and will let you know upfront exactly what the terms of the loan are. All Fannie Mae and Freddie Mac loans usually add points to their 100% loans, but I just read where they may not even do 100% financing at this time.
Locks are only good for a certain amount of time and what happens is the conditions from the Underwriter are not met and so therefore the lock is lost.

GMAC's Underwriter might be trying to follow new guidelines and may in fact try to keep the loan themselves instead of brokering it out to someone else even though that is where the banks make their money.

Lillian Said:

Does anyone know if mortgage lenders call employers to verify employment "100% sure" or just use your stubs?

We Answered:

Not informing your lender of a change in your employment status can constitute mortgage fraud...which is a crime. You were approved based on your current employment. Accepting the loan now, under false pretenses could land you in jail.

BTW...yes...they will check a day or two before closing.

Nicholas Said:

Mortgage lenders?

We Answered:

You missed the boat. Last year you could have gotten a mortgage little or no documentation. One friend of mine borrowed 400k over the phone and was in his new house in 30 days.

Right now everyone is totally gun shy. If I were you I'd start with luxury home builders, most of these builders have connections because many of their buyers have very complicated income histories.

Why can't you use you past 1040's to verify your income? Have you contacted the IRS to see if they will help? Have you talked to your local congressman and explain the situation to him? Officially he might not be able to get directly involved but unofficially he might say something to somebody. These things do happen (especially for an Veteran).

Keep in mind mortgage companies hate dealing with the IRS. If you are lying and the IRS puts a lien on the house, that lien gets paid off first even before the mortgage. Therefore the mortgage company's losses can include the tax lien (loss of available equity to them) if the house goes into foreclosure.