FHA Home Loans With Credit Scores Down to 500
The FHA AFFORDABLE PROGRAM was designed to help credit worthy borrowers who have been unable to obtain financing due to their credit scores.
Under this program borrowers who have shown both the capacity and the willingness to pay their bills and expenses for the last 12 months but who's credit scores are standing in the way of obtaining an APPROVAL via automated underwriting will now be giving consideration under this new program.
Stringent overlays apply such as:
1) Debt Ratio's cannot exceed 31/43
2) Down Payment must come from borrowers own funds - Gift funds for the initial 3.50% down are not allowed.
3) No increase in new loan payments (PITI) over current rent payments - If no rent payments then the ability to save or reduce debt by the amount of the new loan payments (PITI) must be shown.
***30 year fixed rate loans only. Additional Overlays may apply. These loans are determined on a case by case basis.
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