From 2002 through the beginning part of 2007, the market for mortgages was hot.  Home appreciation went through the roof and getting qualified for a mortgage became pretty easy for a lot of people.  Loan products were created that allowed clients to easily qualify regardless of their income - these programs were more FICO score driven than income driven. 

Today it's a different story.  Banks have been much more conservative in recent months.  Because of this many realtors and buyers are scrambling to find out what type of financing is out there.

Loan programs have changed.  Below is a snapshot of what's out there:

-100% Financing Full Documentation

-95% Stated Income Loans (Loan amounts below $417,000)
        -Need to be self employed

-85% Stated Income Jumbo Loans (Loan amounts above $417,000)
        -Need to be self employed

-90% No Ratio transaction.  Ignore Debt to Income Ratio completely (Must be a conforming loan amount, below 417,000)

-FHA loans up to $362,790 with 103% financing (No minimum FICO score)

-VA loans up to $521,250 no down payment with no mortgage insurance (Great loan for vets)

As you can see from above there are loan options out there for people trying to purchase property.  Especially here in the Inland Empire where prices are becoming more and more reasonable.  We are seeing FHA loan programs being used in our office much more frequently than before mainly because it's a great loan program for purchase prices that are within it's loan limits. 

If you have any questions about FHA or need help getting your clients qualified give me a call. 

Questions or comments?