Are you looking for Jumbo or within Conforming Loan Limits?

Conforming loan limit, California, full doc, 750+ fico. I keep getting cut 5% due to the soft market. Had an approval with wamu, from about a month and a half ago while they were shopping for a home, they are moving it up the ladder to see if they will still honor it at 100%, but I'm not optimistic, would really like to have a backup plan!

What county is the property in? I have a few idea's.

It's in Contra Costa. I actually found a home, Wells will do it as long as the appraiser does not denote it being in a declining market. They will do it on the freddie mac "home possible" program. Just have to make sure the home they select is not located in a hotbed of foreclosures. Have my wife working with them to find a home, and there are pockets out here that are still stable. They just have to select a home in a stable enough area to make it fly.

If you have another idea, however, I'm all ears. The appraisal will be reviewed, and there is always the potential for them to come back and chop me 5%. Let me know your ideas, I would appreciate it!

When you ran DU for Fannie Mae did DU show it in a declining market? If not the same rule as Wells would apply to any Agency program at Flagstar Bank.

Let me define it by using a cut/paste of their policy:



So, this expands the product lines of Fannie Mae back into your offer.
Flex 97 & 100
MCM 97 & 100
Standard Agency
Agency SIVA
Agency SISA

That's great, I like Flagstar more than I like Wells. I will give them a ring in the morning and see what they have to say. I can't believe I didn't run it by them!

I talked with Flagstar today, they do have declining markets by county marked for an LTV cut, Contra Costa being one of them, no 100%. So far, Wells is all I've found!

I have heard rumors of a USDA loan that will go to 102% in certain cities that match their parameters. Gotta think creative in a market like this.

cgoulart, the memo explains how it works. If you login to their site and read the 4 or 5 memo's regarding declining markets you will see what Flagstar can and cannot do.

I am jumping onto a soap box for a second. We as loan officers rely too much on what other people tell us. If you read guidelines like and underwriter you will know exactly what to expect on your loans. When your 1 yr in the business account rep tells you we can do it and you submit the deal to find out they cannot.... Or, you call some customer service rep paid 10 bucks an hour.... Take complete control of your loan!

cgoulart this is not directed at you. It is a general statement.

I said that Contra Costa is on the declining markets list. Then I cut/pasted the memo that is Flagstars policy. If your property meets both requirements in the memo known as a. and b. the declining market cut can be lifted.

So, I would try to pull that memo, call back, and tell them the way you and I read it.

Adam,
Yes, but they charge a 2% fee. So, it is 100% financing. There are geographical requirements and income restrictions.

The best thing about USDA is if you have a 620 score you are approved. USDA Stremeline

You could be 1 day out of foreclosure or bankruptcy. You do not need to explain and derogatory credit nor pay it off.

The 2% is for pre-paid MI though so you don't have to worry about that at least. The income restrictions are fairly reasonable though, 120% of the median income for the area.

Thank you, I will see if I can make it fly.

Don't get me wrong though. The lenders are tightening by the day.

They released a new memo about declining markets I have not read yet. Make sure and go in the memo's section and read some of their changes.


2% is a Guarantee Fee.. There is no PMI on USDA.