In a continuation of a recent loosening of home financing guidelines, I now can offer "expanded programs" for Borrowers with Credit Scores (middle score) of 580 (FHA Loans) and 600 (Conventional Loans).
These new options apply to:
Purchase Transactions of 1-to-4 residential units ... for Buyers use as a Primary Residence (Owner-Occupied).
Allowances are made for Borrowers having suffered past major events such as:
- Short Sales
This program's Waiting Periods are reduced from those of traditional programs.
Be aware: There are several caveats to this program. Those caveats include "Risk-Related" guidelines for Down Payments, Credit Scores, and Debt-to-Income Ratios.
This is NOT a reversion to bad lending practices of the first decade of the 2000's.
These will be very common-sense Underwriting deals. Down Payment requirements of at least 15% or more will be required depending on Credit Scores.
The lowest Credit Score Buyers will need a substantial Down Payment of 25% or more and the loans will be either a:
- 30-year Fixed Rate term
- 7/1 ARM
These requirements will be in place to maintain stability of monthly payment amounts and the risk to the Borrower ...
Borrowers most likely to take advantage of this program will be those that have:
- Stability within their employment
- Stability in their income
- Possess reasonable debt
- Have had an "event" (such as those listed above) during recent years ... or suffered financial misfortunes during the last 10 years.
Misfortunes considered for this program include:
- Loss of Home Value
- Income Reduction
- Layoff from Employment
- Job Loss
This program allows (with Qualifying Conditions), financing for a home purchase in the following cases:
- 2-Years AFTER a Bankruptcy Discharge, Chapter 7 or Chapter 11
- 1-Year AFTER a Bankruptcy Discharge/History - Chapter 13
- 2-Years AFTER a Foreclosure (waiting period measured from the date of the action/judicial sale)
- 1-Year AFTER a Short Sale, measured by the Closing Date on the Sold Property
The minimum loan amount in this program is $150,000.
Please Note: Several Underwriting Requirements must be met to qualify for this program. It is NOT an "anything goes" loan product. Those who qualify will have to meet stringent requirements and risk of lending will be weighed heavily during the process.
Also Note: This product may not be available in all states.
Should you want more detailed information regarding this program and your ability to utilize its benefits, please contact me. This program could provide the path back to homeownership that you've been looking for ...
* Hoping to Buy a home in the Chicagoland area? Contact Me today! I'll put my 37 years of Mortgage experience and expertise hard to work on your behalf.
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