MOST BUYERS CAN STILL QUALIFY FOR A MORTGAGE LOAN WITH 580 CREDIT SCORE!
Credit applicants with lower scores generally must have more bank reserves and lenders still look at debt ratios -- the percentage of income a person spends on debt each month.
FHA lending guidelines allow for some buyers with 580 credit scores to purchase homes for as little as *3 percent down and are still allowed to use down payment assistance programs, gifts and secured loans. * 3.5% required down payment goes into effect Januaray 1 2009, keep in mind the assistance can still be used so little money out of pocket for the buyer is still avaliable.
By combining a Federal Housing Authority first mortgage with a Mississippi Housing Finance Authority second mortgage( MHC), banks can finance purchases up to $250,000 with no money down with low interest rates with credit scores of 580 or higher.
Not every applicant with a 580 will qualify, but some will. As the credit score climbs, so does the applicant's chances of getting the loan. We can help get them to that point.
Once the credit score reaches the 650 neighborhood, the majority of applicants will be approved, given the exception of documenting the income.
No one knows where Mortgages will be a year from now but today conforming financing is still avalioable and with good deals out there,
"Now is a good time to buy," . "Now, you can qualify."
The national focus on the credit crunch doesn't reflect the situation in a lot of areas in the US and may be causing some people to be surprised by the financing that is available.
Most FHA, VA and RD borrowers are still getting into homes with little to no money down.
Now is a good time for borrowers because interest rates remain well below the long-term average.
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