Recently I received an FHA approval for a couple with a credit score of 603. In the past few months I have seen an easing in the credit policies of both conventional and FHA loans and that’s encouraging. Normally, FHA lenders requires at least a 620 credit score to get anything approved. We now have lenders who will do FHA loans for borrowers with credit scores down to 580.
These particular borrowers had a few collections, but their high credit card balances were killing their credit scores. It did help that they had a low debt to income ratio.
Keep in mind: conventional loans, regardless of the down payment still require a credit score of 620 per Fannie Mae and Freddie Mac guidelines.
Monday, August 10, 2015
Monday, August 3, 2015
Loan Programs To Choose
Did you know a buyer purchasing an investment property can put down as little as 15%? This opens a lot of doors for your investors. Some of the requirements are… the property be a one-unit detached single family residence, the buyer’s credit score be 720 and above, and the buyer cannot have more than 3 properties already financed. For your buyers who already have 4 to 9 properties financed, the minimum down payment is 25% and there are credit score and reserve requirements.
Also, we’ve seen an increase in inquiries regarding Jumbo financing. We recently quoted a 30 year fixed at 4.375%. (4.439% APR) That’s only .25% higher in the rate than conventional financing. If you have questions regarding Jumbo, Conventional, VA, or FHA financing call or email me.
Also, we’ve seen an increase in inquiries regarding Jumbo financing. We recently quoted a 30 year fixed at 4.375%. (4.439% APR) That’s only .25% higher in the rate than conventional financing. If you have questions regarding Jumbo, Conventional, VA, or FHA financing call or email me.
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