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620 Minimums

Reblogger Jeff Belonger

Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

February 05, 2009 08:04 AM

Borrowers, please beware of this information. This is not true by HUD, FHA, or from Congress. This is false and misleading information. Yes, some investors and lenders are raising their credit scores to 620. Several of us, including myself can still manually underwrite FHA loans down to a credit score of 580, even after 2/12/09. And some of us can still do loans down to a credit score of 530. Per HUD mortgagee letter 2008-22, it states this on page 2. • Borrowers with decision credit scores below 500 and with loan-to-value ratios at or above 90 percent are not eligible for FHA-insured mortgage financing. www.fhaloansfhamortgages.com

Effective around 2/12/09, the worst credit score you can have for a Government loan (FHA or VA) will move up to 620.

If your credit is below that and you need a mortgage, go to annualcreditreport.com and dispute any wrong item.

This is 100% FREE!!! The government makes all three credit companies let you see your report once a year and dispute anything wrong.

Also, if you dispute something and the creditor does not respond within 30 days, the item is then removed from your report!

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Gerry Suarez Jr.

New American Funding NMLS 6606 - Orlando, FL

FL Mortgage Guru

...and down to 500 pursuant to HUD right Jeff?

It is such a shame that this misinformation pervades the internet. We need to find a way to RAISE THE BAR!

How is your average layperson trying to buy a home supposed to differentiate between this incorrect information and fact? Kudos for fleshing out the truth, in spite of the comments that may follow urging you to "play nice".

Gerry Suarez, Jr.

Your FHA Loan Pro!

Feb 05, 2009 10:45 AM

Sonny Kwan

Quantum Group Commercial - Residential - Lease Seattle, WA - Mercer Island, WA

206-819-8228

Thanks for the updated info, I will need to correct this information and pass this along

Feb 05, 2009 10:51 AM

Celeste "SALLY" Cheeseman

Liberty Homes - Mililani, HI

(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

You are always on it with the correct information....thanks Jeff.

Feb 05, 2009 10:57 AM

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Keller Williams Realty - Ann Arbor, MI

Ann Arbor Area Real Estate

Thank you so much. I appreciate this and will bookmark it for tomorrow.

Feb 05, 2009 11:03 AM

Ron Tarvin

Residential, Investment properties, rehab projects, property management, luxury homes, new construction! - Katy, TX

Broker, Katy, Houston, Cypress 77450,77494,77095

Good catch on that one...I started to comment on it when it was posted earlier today. I did have an LO that said SOME lenders are requiring 620 to do FHA...could it be true that some lenders using FHA have their own requirement or would that also be a falsehood?

I've also seen A LOT of people posting the $15,000 tax credit but that was just agreed to put it in the stim pack and that hasn't passed yet!

They are also debating a 30 year fixed rate 4% mortgage to go along with the tax credit...no word on whether that has enough support yet or not!

Feb 05, 2009 11:26 AM

Krista Fuchs

Prudential Fox & Roach - Exton, PA

Chester County Realtor - (484) 459-8025 - Home Buying and Selling

Thanks for letting us know the real deal! (little comment love for ya!)

Feb 05, 2009 11:56 AM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Everyone, here is Fred's comment to us on his post about this information....

"I would all check with your wholesalers. This has been told to me by 2 different AE's this week.

I do not do FHA so I have nothing to gain or loss by putting this info out.

I have also heard that the GNMAs are not selling because of the credit quality either. Unfortunatley, the credit scores and quality must go up to attract buyer, yet the Feds are the ones buying the paper!

Think about the Freddie Mac .75 add on for condos to improved salability. Same thing, the Fed is buying the paper. It's not a good thing!

It's getting tougher all around and it will only get worse before it gets better!"

My Response to Fred's comment.... our investors that we sell to would send us an update and tell us the changes. They would tell you when this would go into effect and when it had to close. Those that are still at 580, have not sent a thing yet and it's February 5th.

GERRY..... . this is beyond sad... when you sent this to me in an e-mail, I basically cried. This is beyond misinformation...

SONY.... . my pleasure... I think it is our job to keep people informed and to pass the correct information out there. thanks

SALLY..... . thanks for your support... hey, we all make mistakes, but to put stuff out that you heard from someone else and not verify it??? sad and that is one thing that has hurt our economy.

KAREN..... . my pleasure.... I think many of us need to reblog this and to add the opening statement as I did. thanks

RON.... . you are correct to state that some lenders / investors have their own requirements. They can add or change to this as they see fit, as long as it doen't go below a HUD guideline. And yes, I have seen some post about the $15,000 tax credit, that hasn't been approved yet. This is how misinformation gets spread around so quickly.

KRISTA..... . you are always welcomed to bring any love over my way. It gets lonley over here at times, in the mortgage world.

Feb 05, 2009 12:34 PM

Larry Bettag

Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL

Vice-President of National Production

I think that there's a little more to the story here JB. Investors have to agree to purchase the loans. therefore, I like you, don't have a problem down to 580. I hear that everyone has gone to 620. I know that it's bull. I won't be surprised if there is a move to 620 because of a servicer's requirements. However, I do think that investors are out of the 500 and 530 game. We're parallel to you, but I get miffed, like you, at INTENTIONAL DISINFORMATION. Mistakes happen, but INTENTIONAL DISINFORMATION is very harmful to all who are the recipients of that info.

Feb 05, 2009 02:43 PM

Libby Cousins

Extraordinary Processing - Spokane, WA

Contract Mortgage Processor, licensed in WA

Jeff- thanks for the clarification of what HUD allows. Most of the lenders that my brokers use have gone to the higher credit scores so investors will buy the loans. I hope that borrowers and young people really take their credit seriously so they won't have to worry about it when they want to buy a home. For the people with low scores already, they need to focus on bringing them up.

Feb 05, 2009 04:54 PM

Donne Knudsen

Los Angeles & Ventura Counties in CA - Simi Valley, CA

CalState Realty Services

Jeff - Like you and some others, I can still go to 580 for manual u/w. Yes, there are a lot of lenders who won't go that low but there are others that will. So, for those consumers in that particular situation looking for a lender to help them, THEY EXIST. You just need to talk to the right mortgage professional who has those programs available.

Feb 06, 2009 01:57 AM

Marian Thomas

Texas Small Business Lending - Fort Worth, TX

Does that apply to the Home Stablization Program of 2009 Obama is pushing.

Marian Thomas

mavericksellsmoney@gmail.com

Feb 19, 2009 08:10 AM