Can You Still Get 100% Financing?
JoJo on Apr 4th 2007
With the recent subprime shake-up, yes, some 100% financing is disappearing.
- What is a subprime loan? Pioneered in Orange County California, this lending option targets borrowers with marginal credit scores.
- Why the shakeup? Subprime borrowers had trouble making payments, consequently, the financial backers of these lenders decided to pull the plug on future mortgage loans.
It’s not as bad as it seems, though. Only 20% of all U.S. mortgages are subprime. Only 1 in 8 of that 20% default, which equates to a 2.5% default rate. Since many of these loans were 100% financed, that whole area of the mortgage industry is being closely scrutinized, with many lender dropping 100% financed loan options.
There is a light at the end of the tunnel. If you have good credit scores and/or can provide full documentation for your loan, some lenders are still offering 100% financing. One of those lenders is First Capital, located in Orange County California. For more information on 100% financing or other loan options, contact my local branch in Laguna Niguel by calling 949-249-6150 or visit their website at www.OCLoanTeam.com
