Questions for Lending maestro

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tulip_IHB

tulip_IHB

New member
What is going on with the lending industry? According to my loan officer....if I buy any REO property, it is required a 15% down payment...is that true?



Another loan officer told me I can finance with 10% down, and no PMI. No second loan either. I just want a old fashion loan 30 years fixed.



Any advices?



Thanks
 
You can still get a plain vanilla 30 year FRM with 5% down (conforming; not jumbo), but you must go full doc and have a strong FICO score.



Why would the REO seller care how much you put down, so long as they get paid? I think your loan officer is mistaken.
 
It depends on which bank you are going with. PMI is quite expensive, and certain companies that offer PMI are no longer doing so in California.





If a loan above 80% LTV does not require PMI, it is just because you are paying a higher interest rate. This is called Lender Paid Mortgage Insurance. I can't tell you what to do exactly because I don't know what the loan size is, credit, income etc...





Contact Indymac Bank, Wells Fargo directly. Both of these banks have relatively low costs for retail originations, and they need loans badly. If you use a mortgage broker, please be careful. Hopefully your loan officer is approved through Provident. They are probably the best A paper wholesale bank in the country.
 
I should've said 95% CLTV--that is "combined loan to value." If you do a combo loan, you don't need PMI.



Flagstar Bank is beating the pants off Provident Funding, plus they're much nicer to deal with.
 
<em>You can still get a plain vanilla 30 year FRM with 5% down (conforming; not jumbo).





</em>Actually, not always. If Fannie or Freddie, has declared it a declining market, and there are plenty in OC, or OFHEO, S&P Case Shiller index, CAR, or the appraiser marks the box declining market, then you need 10% down. I visited a new home community, in Orange, and they knew they were in a declining market, and they knew you needed 10% down.
 
<a href="http://calculatedrisk.blogspot.com/2008/02/wells-fargo-new-tighter-mortgage.html">And, here is what Wells Fargo thinks of Cali in general</a>.
 
graphrix, you're right; I should've qualified my answer by the new "declining markets" edict. Only CalHFA still does 100% financing whereby you can't make more than $88,000 per year.
 
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