Frank Gageby Blog

As the mortgage market continues to crumble, a market favorite may be disappearing.  No money down financing appears to be on the way out.  Just last week, Freddie Mac released information that, if implemented, all but eliminates competitive 100% financing to the average borrower.  Industry leader Fannie Mae cannot be far behind.    

Declining home values have made these types of products too risky for lenders.  Although our Indiana real estate values are down only slightly, the national trend of larger declines provide stronger influence to these agencies.  The old days of needing a minimum of 3-5% down payment may be just around the corner.

The upshot of all this is you better move fast if you want to buy with no money down.  Real Estate Agents need to convince their "on the fence" buyers.. Now is the time before it is too late! 

As a twenty year veteran of this business, I have never seen a time when the mortgage market was tightening so dramatically.  Unfortunately, I feel things will get worse before they get better.