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New FHA Low FICO Loan Program Gives Promise to Even More Buyers!

By Larry Costa

Real Estate Agent with Century 21 Classic Gold, Carver MA

February 12, 2011 03:18 AM

FHA Low Fico Loan Program

Several banks have begun offering a new program called the Low Fico FHA Loan. This will open up the buying opportunity to millions of more potential homeowners looking to buy now affordable homes, in todays market.

The program is for borrowers with a FICO score of 580-639. Until now the minimum FICO score was 625.

The program requires a 3.5% down payment and the rate is typically about 3/8% higher than the regular FHA loan. This is a purchase only loan, and can be closed in a normal amount of time.

Program Highlights Include:

116 Cranberry Rd Carver MA

3.5% Down payment!
Fixed rate loan only
Applies only to purchase loans
Up to 6% seller concessions
Gift Funds permitted in some instances

If you've been waiting for your opportunity to buy a home in Southeastern Massachusetts then this may be it. Rates have been inching up. Please give me call at 508-272-8028 and I'd be happy to point you in the right direction.

Larry Costa

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Century 21 Classic Gold, Carver MA - Carver, MA

Realtor, MA Real Estate

Hi Mark, this program isn't for everyone and not everyone will qualify just beccause they have a FICO in that range. The requirements are tough, as you can imagine being in the business. You're right though, there are people who've had a bad run, maybe loss their job fell behind etc. If they're back on their feet I for one think they should be able to buy a home. This economy has done some major credit damage to a lot of good hardworking people. Banks need to find ways to lend to deserving people and not lock them out because a bad time in their lives.

Feb 12, 2011 03:43 AM

Art Hademan

Century 21 Real Estate Center - Mount Vernon, WA

This is good info to have in hand.

Low FICO scores don't necessarily mean that the buyer is a louse and can't pay his bills.

Bad things happen to good people and those folks deserve the opportunity to start over.

Feb 12, 2011 03:49 AM

Thanks Art. Couldn't have said better myself!

Feb 12, 2011 03:52 AM

Jay Beckingham

Christensen Financial Mortgage - Port St Lucie, FL

Seniors ROCK!

can you carify this.

under 620, gift funds are allowed, but not for the downpayment. the 3.5% downpayment must come from the borrowers own funds. gift funds can be used for closing costs

Feb 12, 2011 01:00 PM

Thanks Jay, the info from my loan officer wasn't that specific. I made the change. What a great program though.

Feb 12, 2011 01:16 PM

Anonymous

Crimpton Troy Singleton

Mr. Costa,

We are desperate for a loan program that can help me.

Currently own a condo in Jamaica Plain, MA 2BDR 2BA 1300 sq ft., plan on renting it out for $2400/mo. Value $345,000

Current mortgage is $1334/mo. condo fees $152

My loan was for $285,000 and is currently paid down to $234,000 (no longer paying PMI)

My fiance' and I would like to make a purchase in Roslindale, MA of a condo for $460,000 (new construction, 2 units)

We have a down payment of between $100,000 - $150,000, gift from my parents ( we would like to put down as little as possible)

The problem is MY FICO scores: 610, 620, 613 (as of last week)

Equifax 649, Experian 634, Transunion 644

Jeanne's scores are all over 700.

I make $58,000/yr. Teacher,

Jeanne $41,000 plus commission

We wanted a conventional loan but we have had no luck.

Are there any programs you could recommend we pursue. We need to make a move on this home immediately.

Thanks!

617-524-5884 Home

617-676-5678 Cell

Apr 17, 2013 02:57 PM

New FHA Low FICO Loan Program Gives Promise to Even More Buyers!

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