New BofA 3% Down no PMI Loan Program

[CH-7-Mission-Accomplished]

http://www.housingwire.com/articles/36343-bank-of-america-now-offers-3-down-mortgages-without-mortga...

[GirlMelanie89]

Interesting...althouugh this is probably a great option for alot of people, the announcement seems so condescending. My favorite quote, "FHA requirements are down to a 520 FICO (credit score) and you only have to put 3.5% down; that's subprime lending, and we're not in the subprime lending business," CNBC quotes Watters saying."

Ohhh ok. Lol. But because of FHA, lot of people are now and have been able to buy a home. I thought that wa the point of PMI. 

[Imperfectfuture]

USDA Guaranteed and direct offer loans with no pmi. Looks like BOA wants a piece of the action for guaranteed, and can offer it with higher loan amounts (not the limits of the Feds). This would be good program for my sister.

[tanyagarrett]

Please give us your imput Shane the Mortgage Guy and Dallas.

[Revelate]

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@Imperfectfuture wrote:
USDA Guaranteed and direct offer loans with no pmi. Looks like BOA wants a piece of the action for guaranteed, and can offer it with higher loan amounts (not the limits of the Feds). This would be good program for my sister.

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Good program for a whole lot of people as I understood it from the original chatter.  Likely will re-landscape a non-trivial amount of the market - if you can hit 660 why ever consider FHA and all the hassles of that?  If you're sitting on a FHA loan and can hit 660, refi that MIP away.  This assumes the rates make any sort of remote sense which thy probably will.

Won't suggest why this is being pushed now, but found cash for a whole bunch of folks that'll get dropped straight back into the economy.  FHA gets left holding the bag for everyone 659 and below.  

Heck, to be honest, if I weren't excluded likely on whatever income limits there are, I would've been talking them to sort out my own mortgage last year... current interest rates and lots more cash in hand without PMI?  Yes please!