100% OO Mortgages could be drying up as well
I have a pre approval for an OO 100% Mortage through USAA Federal Savings Bank. I called yesterday to ask about getting a pre approval letter for an offer I'm going to make. The woman I spoke to said even though I have 100% financing, they will require 5% down if the appraisal shows it to be in a declining market (which supposedly 9 out of 10 homes are) even though I would be buying the house at 80% of FMV!
Is the market really going to tank 20%+? Who knows but then it would be at FMV anyways.
I'm a first time buyer with very good credit for crying out loud. Do they want to ruin the market even more?