Some seem crazy, some seem fantastic. This one is a little of both.
The FHA loan programs have been a wonderful thing for our market. They have enabled some with very little money to purchase their home. Help from a family member, ways to do work on a home built into the loan, not having to have reserves in the bank are a few that increase the ability to move inventory.
And, we need to move inventory. Will need to move inventory for quite some time.
So, one of my favorite lenders told me about a new product that FHA has to offer for someone that has below their generally minimum 620 FICO. For this loan, they must have a minimum of 580, but wow, that's amazing.
A few stipulations, but not insurmountable.
* Must have minimum 580 FICO with at least 1 valid credit scoring. If there is a Short-Sale in their history, has to have at least a 3 year lapse.
* Debt to Income ratio 45-50% dependant upon cash being brought in, borrowers current housing expense and payment history for same.
* Reserves must be between 2 - 4 months.
* Co-Borrowers that are not going to be living on the property need to have between 2 - 6 months reserves.
* No multi-residential. No flips where seller hasn't owned for at least 6 months.
Call me if you have more questions and I can answer and direct you to the lender that shared this with me.
But, really, to have purchasing power with a 580 FICO? Fantastic! If you've been saying "NO" because you're scared to get off the fence due to your credit rating, now may be a good time for you to take the leap!
No comments:
Post a Comment