Home Buyers: 100% Financing Getting Harder

I had mentioned in early December that first time home buyers would have a harder time getting qualified for a loan and that there was still time to buy real estate with zero down before February. My clients at the time had excellent credit scores, great incomes and were buying a house so far below market that even when the lender asked for more comps, we were able to provide them.

That excellent purchase went through just fine, but today the Sacramento Bee reports that mortgage insurers may begin to stop issuing PMI for 0 down financing.

Unfortunately, thanks to the empty-headed bubbleheads out there, such warnings when issued by Realtors are ignored as "just a sales pitch" with the obvious remark, "Of course you're going to say that - you sell real estate!" That's like saying, borrowing a comment from John Lockwood, to a doctor, "Of course you're going to say it's a good time to get sick - you're a doctor!"