Consumers with less than perfect credit may be interested in knowing that a well-known national lender has announced their willingness to consider offering mortgages to credit-challenged Metro Atlanta borrowers. Here are a few of the stipulations…
- The borrower’s total monthly mortgage payment (including home owner association dues) may not exceed 31% of their gross monthly income. Further, the borrower’s proposed total monthly mortgage payment plus any other monthly payments toward debt such as un-deferred student loans, auto loans, credit cards may not exceed 43% of the borrower’s gross income.
- The borrower must provide their own down payment
- No down payment assistance
-- Gift funds must be in borrower’s accounts for at least sixty days prior to credit review
-- Required down payments also apply to purchases of HUD-owned homes (no $100 down)
-- Credit scores of 500 – 579 require 10% down
-- Credit scores of 580 – 600 require 5% down
- Seller contribution to closing costs capped at three percent
- The borrower must have a minimum of two months of reserves to cover payments of principal, interest, taxes and insurance in addition to the required down payment
- Existing bankruptcy and foreclosure rules remain in place, but this program may even be available to borrowers who have encountered one or both of those events two or more years ago
Approval is not guaranteed as this is only the start of the evaluation, a process that could last a few weeks. But borrowers who are approved for a mortgage can immediately begin searching for a home with confidence that they can close.
If you are not working with a real estate agent, please call (678) 775-2677 or write today for more details and let’s get started.
Solomon Greene
REALTOR® / HUD-certified Affordable Housing Counselor - Keller Williams Realty Atlanta Partners
http://www.AtlantaDownPaymentAssistance.com
(678) 775-2677
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