Jumbo Loan Down To A 500 Credit Score…

By
Mortgage and Lending with Berkshire Lending, LLC

small brett pic Jumbo Loan Down To A 500 Credit Score...A product of the Frank Dodd act was the creation of the Qualified Mortgage.

Any bank or mortgage company that makes a mortgage loan has to make sure that it fits into the “Qualified Mortgage” rules. …and there are a lot of rules! Trust me.

However, the laws of nature apply to the mortgage world too. Nature abhors a vacuum.

…So, the advent of the “Non Qualified Mortgage” is also in a way a by product of the Frank Dodd act.

These are loans that skirt the rules of Qualified Mortgages.

The benefit of these loans are that they typically allow for reduced documentation, or even stated income and asset docs. They also allow for lower credit scores.

However, you will put more money down on Non QM loans, and have a higher interest rate.

We carry Non QM loans.

In fact, I wanted to highlight one of our products in this post.

We actually have a Jumbo loan (amount over $417,000) that you can get with a credit score as low as 500! Max loan to value ratio on this product is 70%. Rates are high though – around 9%, with an apr in the 10′s.

…just sayin’, if you really want a loan, and you have a down payment – you can get it these days.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

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Comments (11)

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

The higher interest rate and higher down payment area a reasonable trade-off for a lender taking this kind of risk. 

This is actually fairly consumer friendly. 

 

Nov 03, 2014 08:50 PM
Raymond Denton
Homesmart / Evergreen Realty - Mission Viejo, CA
Casta del Sol Realtor

What's the maximum that can be borrowed with that program, Brett?  And is it available in all States?

Nov 04, 2014 02:27 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     It's like my homeowners insurance agent says... "Diving boards?  Trampolines?  No problem!  But you're going to pay!"

Nov 04, 2014 02:58 AM
Kevin Mackessy
Blue Olive Properties, LLC - Highlands Ranch, CO
Dedicated. Qualified. Local.

If they have the money and the motivation this works well for them.  Especially if the credit score is going to take longer to improve.  

Nov 04, 2014 05:06 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Seems like a low score on a high priced item.  But, if there are guideline in place, high down, some skin in the game, have at it.

Nov 04, 2014 07:15 AM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Brett Sampson - well, the lender should be okay - after all, it's the buyer who is risking lot more here.

And yes, everyone can get a loan - at whatever credit score - it just depends what they are willing to risk.

Nov 04, 2014 02:49 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Wow, wow, wow! I hadn't heard of this. We have lenders in our area who will do a 95% jumbo loan with the right credit, but 500 scores is unbelievable!

Nov 04, 2014 09:16 PM
Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

Hey Brett,

I was surprised when I heard about the no doc loans being available again.  So 500 credit score for the loan?  Expensive but someone may need it...

Nov 04, 2014 10:05 PM
Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

A credit score in the 500 range is getting into the high risk zone--higher down and higher rate offer the lender some insurance.

Nov 05, 2014 04:45 AM
Kim Boekholder Utah Real Estate
Results Real Estate 801.580.5624 - Draper, UT
Broker, Results Real Estate

I wasn't aware of this program.  I think its a good idea.. Higher rate and more money down.  A variety of loan programs will help keep the market moving in the right direction. 

Nov 08, 2014 10:00 PM
Jeffrey Dowling
UBA LOAN BANK - Beowawe, NV
A LOAN LEDNER

Good Day Sir/Madam:

 

Getting a legitimate loan have always been a huge problem To clients who have financial problem and need solution to it. The issue of credit and collateral are something that clients are always worried about when seeking a loan from a legitimate lender. But.. we have made that difference in the lending industry. We can arrange for a loan from the range of $2,500. to $500,000.000 as low as 5%interest 

 

Our Services Include the Following:

Debt Consolidation

Second Mortgage

Business Loans

Personal Loans

International Loans

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Family loan

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No social security and no credit check, 100% Guarantee. All you have to do is let us know exactly what you want and we will surely make your dream come true. (UBA LOAN BANK LTD). says YES when your banks say NO. Lastly, we fund small scale loan firm, intermediaries, small scale financial institutions for we have unlimited capital. For further details to go about procuring a loan contact us, Kindly respond immediately

Jun 23, 2015 02:32 PM