Monday, August 10, 2015

FHA Loans for Borrowers

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 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.