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Financing Opportunities or Scary?

By
Real Estate Agent with Keller Williams Premier

It is amazing that even after all the change in the lending world there is some interesting things going on.  Did you know that some lenders will approve people FHA with under a 580 credit scores and 10% down!  I'm not sure if I can be excited about that or not.

I would hate to get close to the closing table and then something change to unqualify my client.  What do you think of this? 

Comments (2)

Dave Woodson
Dave Woodson - Chesterton, IN
Not the Average Agent
you know what is scary that I am having a hard time with getting people approved with a 630, but only one open tradeline.  The Lenders are pulling back s much that it is hurting us all.  At least, with 10% they have some skin in the game vs. the one with 3% down payment assistance
Apr 25, 2008 04:00 PM
Carla Harbert
www.LorainCountyHomeSales.com - Avon, OH
RE/MAX Omega: Lorain-Medina County Area

I could be wrong, but I thought FHA put a new rule into play that a credit score of now 580 is required - no matter if someone puts 20% down. (FHA loans "wasn't" credit score driven last year or before). 3% downpayments are still pretty much a requirement here in Ohio, although AmeriDream and Nehemiah is still around, so a buyer can still sneek in with a 0 down loan.

My opinion and thoughts are about all the "lines of equity" or "2nd mortgages" or "HELOC" loans made after a home sale, that were so easily made available, many times as high as 125% of a homes worth. Boy did that go belly up!  Because most of these 2nd loans were adjustable rates, (not fixed rate loans) that are now having a terrible effect, making it hard, if not impossible for those owners to make escalated house payments - with foreclosures abounding.  Those are the loans that should be curbed more or scrutinized harder.

Yes, I would be leery for your buyer. Good luck! - Carla

 

Apr 25, 2008 04:36 PM