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Closed on Friday, September 21, 2007 - 100% Financing with a 536 middle score!

By Ted Lyons

Mortgage and Lending with www.nosurpriseloans.com

September 23, 2007 02:36 PM

This sets a new personal-best record for me! Amazing that as the mortgage world is undergoing such turmoil that the opportunity would exist to help someone who has a 536 middle score buy their very first home with no money down.

Thank you to:

1. Fannie Mae's Expanded Approval Initiative

2. Washington Mutual

So the next time someone tells you that "100% financing doesn't exist anymore." or "The only way to do zero down is with an extremely high credit score." tell them they're wrong!

The moral for me is to always run the Automated Underwriting Systems and never presume that an answer will be "no."

A very nice way to end another good week!

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Dave Cheatham

INC Financial - Bartlett, IL

Yep, these can still be done and many Loan Officers and people are not looking in the right place. Great Job.

Sep 23, 2007 03:57 PM

Ilyce N. Powell

Financial Revitalize - Baltimore, MD

CMPS- Certified Mortgage Planning Specialist

Thanks for the resource, Ted. Was this a case of great assets?

Sep 26, 2007 04:35 PM

Ted Lyons

www.nosurpriseloans.com - Livonia, MI

Ilyce,

Actually this was a case of practically no assets whatsoever. 1,500 in a 401(k) was all he had. Used a gift from his Mother and seller's concessions to provide the resources to close.

Sep 27, 2007 01:04 AM

Lewis Poretz

Apex Home Loans - Annapolis, MD

Business Development Manager

Ted - I always try DU first. My community is very forgiving as far as credit is concerned. In most cases. Every now and then you think you have a slam dunk and then you just have to shake your head because a refer keeps popping up. Also keep in mind that lenders can manipulate their tolerances within Fannie and Freddie. So just because one investor gives you a refer, another may take the deal.

The problem I see now is that the MI companies are now requiring a minimum credit score.

Sep 27, 2007 01:32 PM

Andrew Scherer

Approved Mortgage Group - Doylestown, PA

Real Estate Representation At It's Finest

Hey Ted, nice job on getting this closed. There had to be some compensating factors in there somewhere?

Sep 27, 2007 02:46 PM

Gary - it's certainly a lesson for me. Don't say "no" on behalf of the AUS's - make them say it themselves.

Lewis - I agree with the negotiated variances point - although in this case I did receive an EA/III on D.O. from the get-go. I've been lucky with the MI so far - most of my D.O files go through BoA and WAMU which have some pretty strong MI waivers I believe. BoA having a waiver that allows an Approve/Eligible My Community with a less than 620 score to still pay A+ instead of A- rates is huge.

Andrew - he did have 9 years on the job, and the DTI was 45%. His little 401(k) balance did constitute a month's worth of PITI reserves. And then there was the "hidden" benefit of this being a LMIB in a LMICT. Add it all up and it's still a semi-miracle in my book.

Sep 28, 2007 01:50 AM

Closed on Friday, September 21, 2007 - 100% Financing with a 536 middle score!

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