It's Back an FHA Loan with a 580 FICO - No this isn't a joke!
With months of investor overlays, credit restrictions, and an overall hesitance by banks to lend but to only the "cream of the crop", financing to the masses of the population below 640 mid credit score or 20% of the country (source:http://www.creditscoring.com/average) has become very difficult.
A statement of fact that I can already hear groans of "Durrrr" from my agent partners.
So what do we do to help our agent partners boost their business by 20%! Or to be able to help almost every client that they meet by saying hey my mortgage guy can help you get into a house - or at the very least help you reduce the cost of your credit so when you are ready you can buy a home!
So how can we help you?
Simple launch a FHA loan program like: "It's Back an FHA Loan with a 580 FICO - No this isn't a joke!" that brings us back to the old days and designed to help more home buyers!
Mark get to the point!
So if your client has as 580 FICO mid score or greater they can now get a loan, they do not need a 640 or better mid score.
How does it work...
- debt ratios are 31/43% no exceptions
- all collections must be paid except medical
- bankruptcy must be 24 months since discharge NO EXCEPTIONS
- Foreclosure, DIL, Short Sale 36 months since date reported NO EXCEPTIONS
- no condos
- no loan amounts less than $75,000
- all loans are manually underwritten
- contracts cannot be entered into until an approval is issued
- no escrow hold backs
- no HUD homes
- loans cannot be locked until appraisal is received
- rates are based on current market and small overlays based on each credit tier - makes sense lower score higher rate based on risk factors.