Suspicious of 100% LTV Programs - Posted by John P.

Posted by John P on September 26, 2003 at 01:59:25:


I’m writing this in response to a question I received & just wanted to post it for others to read as well in case they were wondering too.

The person wanted to know if Wells Fargo offered this $0 Down, 100%LTV, Stated Income program for a Non-Owner Occupied

This particular program I’m going with is for Owner-Occupied.

I don’t know if Wells Fargo offers the same deal for a Non-Owner-Occupied.

However, I do know the following:…they do both 5% & 10% Down, Stated Income, for a Non-Owner-Occupied.

Hope it helps.

John P.
Maui, HI

Suspicious of 100% LTV Programs - Posted by John P.

Posted by John P. on September 19, 2003 at 17:12:04:


My name is John, I reside in Hawaii and am in the process of buying a SFH with attached 1bd/1ba apartment.

I found a $0 down, 100% LTV, Stated Income program thru Wells Fargo. I have a FICO of 759.

Lender is offering the following:

  1. 1st Mortgage–2yr fixed @ 6.75%, then becomes ARM.
  2. 2nd Mortgage–Home Equity Line @ 4.875% Adjustable Rate.
    Lender states that we can refinance whole thing after 2yrs into a single, fixed mortgage.

Don’t know what to think about this whole thing.

Personally, I would prefer a single, fixed mortgage.

Anyone know of any better programs?

Investor peers please feel free to comment.

Best Regards,
–John P
Maui, Hawaii

Re: Suspicious of 100% LTV Programs - Posted by Shambhu Nath

Posted by Shambhu Nath on September 22, 2003 at 14:24:53:

Stated 100 % LTV is hard to find and that is why you are paying highe rate than 2 year arm if you had 5 % or 10 % down. Also,two loans might be helping you with mortgage insurance as greater than 80 ltv,needs mortgage insurance. With your score and 10% down, you should be able to get conforming rate for 30 year fixed.

Re: Suspicious of 100% LTV Programs - Posted by James Strange

Posted by James Strange on September 20, 2003 at 07:53:20:

Most high LTV loans are two loans.

Since this is stated income and 100% LTV the they are offering very good terms. But do ask about a pre payment penalty. That may be why the say you can refi in two years.

James Strange

Re: Suspicious of 100% LTV Programs - Posted by John P

Posted by John P on September 22, 2003 at 15:32:29:

Just wanted to extend my thanks to those who provided input to my note…its appreciated.

Its always nice to hear from others in RE Investng from around the country…its a good sanity check too.

My decision on pursuing a $0 down & 100%LTV program is a conscious one. I believe I’m not alone on the following mindset; where I don’t mind paying a little more in interest if I can keep my funds intact & in the bank. My anxiety is more on the ARM stuff…which is a new area for me.

Thanks again all!

Keep the input coming.

–John P
Maui, HI