Mortgage Financing made to look easy - FHA loans Have NO Min Credit Score for Florida Homebuyers - Really???

It seems that in times of misery there are people always looking to take advantage of them. I talked to a potential client yesterday who was 5 months behind on an FHA loan, the credit score had dropped to 500, and they had a "loan Officer" tell them they could refinance them. The public is desparate to believe sometimes, and it I take no pleasure in delivering bad news, but we have to do it and keep the intgrity of the business on a higher standard.

Jeff - I reblogged this one! It is great information! Too many misleading articles are circulating again!

Good information here. I can't believe lenders/brokers would be misleading anyone..still. I am going to link back here on my outside blog. Good info! Thanks

Two deals went south this past month because two loan officers from the same company gave pre-approval letters to buyers who couldn't get a mortgage.  I'll wager they were told that getting a loan was easy, too.  Thanks for bringing this up. 

I couldn't agree more with your response. It is completely irresponsible for the author of the other post to make those claims. It continues to put our profession in a bad light when he won't be able to deliver on what he wrote.

I agree that the title of the post can be very misleading. It gives borrowers with less than perfect credit a hope that even with not so great credit they can buy a home. As I have mentioned on another post, and I would love your comment on:

Why should we be segregated into "molds" of perfect and less than perfect credit?

Jeff: As a loan officer with one of the larger mortgage banks in the nation, what they are saying is for the most part untrue. In fact, none of our investors will buy a loan with less than a 620 credit score. US Bank may go to 600 although I hardly ever use them. And we work with all the big ones. Once again, advertising has  told an untruth. This lender is lucky they don't do business in Washington State. There was a lender up here who used to advertise low rates, etc. The attorney general went after them, fined them $500,000 for deceptive advertising and the advertiser subsequently left the state. The good news is mortgage volume is down. What that means is advertisers don't spend as much trying to jilt the public. They can't afford it! Thanks for the post!

Misinformation is rampart these days with the internet and the media in general. You really have to be aware of the facts.  Thanks for posting the info.

Solid post Jeff. That article is so misleading. anyone that comes across it will feel they can get a loan as long as they have a down payment. FICO is a huge factor for investors.

Just re-blogged this, Jeff.  Nothing like a little accuracy, even if it doesn't make for a good headline.

Jeff this is the kind of stuff that give us lenders a bad name. When one of these borrowers gets all the way through the loan process only to find out they did not qualify the bororwer now has a bad taste when it comes to lenders which just perpetuatues the stereotypes we battle already. I thought these guys would have been out of the business by now but I guess not.

Hi Jeff -- No loan is 'easy' as far as I'm concerned. However, many a consumer does get sucked in by all the misinfo out there...and there's plenty of it!

Jeff, Great post.  Full some great facts.  I work with several Realtors in the Dallas area and I hear it off and on why we can't offer what FHA is offering.  I would if the client meets those guidelines and the lenders are buying it....  The internet is a great tool where we can get some much information quickly but it also has caused some problems with the bad and misleading information out there.

Oh, oh here we go again. Someone's got the smoke and mirrors bandwagon cranked up.

The most important thing is to deal with a quality "Mortgage Richer" first. I understand the goal of home ownership for many. It seems sometimes like an impossible mission especially when a client’s credit score is under 580. However it can be done as long as the client is ready to make the proper improvements to their score in order to achieve their plan.

It's not the score that matter’s it's the client’s energy to do what is needed to achieve their home. I disagree with b/s loan programs as well but I always will coach a client that does qualify until they do. Plus I will stick with them for 1 month to 1 year. If they want a home then I want to guide them to qualification. Not all are the same 

Jeff, great information for our consumers. Loans are difficult these days and people need to know it.

I had a client a few months ago that was being sent "pre-approval" letters for a loan, all the way up to his current mortgage file being sent to attorneys for collections.  I had a buyer.  It was not a short sale.. we did manage to get his home sold and closed before he incurred any additional charges... but there is no way he could have qualified for what they were offering him.. He had not made a payment in 6 months, had no job... etc etc.. SHARKS out there.

Thanks for the info.  Great post!