I just got out of a meeting, and was introduced to a great loan product.
100 percent financing, for a borrower with a 620 middle score.
80 percent median income (which is around $35000 a year)
maximum debt ratio of 60% (wow)
bankruptcies eligible one day after discharge (wow)
collections and judgements are not required to be paid (wow)
reposessions allowed (wow)
All of these guidlines are for purchases only ofcourse, and Cash Out Refinances are available, but are the cash out value is only allowed up to 80 percent.
I think this is a great product to give to clients because it will open the potential market up for low income families with less than perfect scores. It's great to see that some lenders are loosening the squeeze on some of the guidelines they have for there loan products. I honestly haven't seen a loan product like this since I've been in the business, granted I'm a newbie to the loan origination business and I'm sure there were sub prime products that were better than this, but times have changed. No more sub prime. Hopefully some of these For Sale signs will say SOLD, very very soon!!
Let me know if I can help with anything!!!
Good Luck!!
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