Just email me and I'll forward his contact info.
Here's the mortgagee letter that talks about this specifically:
Mortgagee Letter 10-29 -- http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/fi
This is the exerpt from it:
In accordance with the final Federal Register Notice [FR-5404-N-02] on
minimum decision credit scores and LTV ratios for FHA-insured single
family mortgages, the new requirements are
* Borrowers with a minimum decision credit score at or above 580 are
eligible for maximum financing.
* Borrowers with a minimum decision credit score between 500 and 579 are
limited to 90 percent LTV.
* Borrowers with a minimum decision credit score of less than 500 are not
eligible for FHA-insured mortgage financing.
As others have said, lenders reserve the right to impose overlays which is why most lenders won't go below 620 as the chances of an audit/buy-back go up astronomically.
Sorry all for the miss!
Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
I am not licensed to perform business in Texas.. However the lender I provided is. I am not affiliated with them in any way. I came across the post and responded as I felt I had a pertinent answer.
Obviously the rates are higher than for those with 620 but that is to be expected. If someone comes to me looking for these programs I would try to improve the credit score first to save them as much money as possible. A couple of hundred dollars on a rapid rescore can save thoudands of dollars. I don't dispute collections nor do I pay them off. That's a waste of time. I try for quick fixes that will impact the score immediately.
These programs are not for everybody. I will tell my clients that if they can get the score above 620, then they wikl save money. Some won't wait and some can't wait, but at the end of the day the program will be affordable to them because the debt to income ratios are the same as any FHA program.
I am licensed in Pennsylvania but would be happy to help someone find a broker using my lender in other states.
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010 & 2012
NMLS ID 143960
I fall into the same 600-620 mid-score scenario.
I am looking to purchase a property within the next 30-60 days.
Purchase price of $417k
Down Payment of 20% (up to 25%)
Loan Amount $334k (or slightly less)
In June 2012 I traded my 2010 truck for a 2012 SUV and Leased another 2013 SUV which greatly affected my scores.
Had to short sale my home in May of 2010.
MY last 3 mortgage credit pulls were: [Equifax, Experian, Transunion]
3/5/2012 [647, 655, 589]
7/2/2012 [596, 627, 614]
8/2/2012 [591, 614, 605]
My most recent Credit Score.com and Creditkarma,com scores are 627 and 632 respectively.
Have already been through 4 rounds of credit repair.
Afraid to do another hard inquiry as it is hurting me more at this point.
I am anxious to get a deal closed very soon as we have found the perfect house and are tired of paying the mortgage for somebody else in terms of renting. PLEASE HELP!!!
Pacific Union lends down to 560
267 992 7276
VOTED BEST OF BUCKS 2010
There are many lenders that will go as low as 580. I broker with Wells Fargo and many others who have this type of program. The problem is you need to fit into a box and people with 580 usually do not fit. While its possible your best bet is to find a reputable lender or broker who will work with you and take the time to get your credit moving in the right directly. Why buy something with a 600 credit score when you can wait a few months if you do the right things and get to a 640. Once you get to a 640 you can get an FHA loan in most cases at the very same rate as somebody with an 800 credit score. That is good information to know so you do not get taken advantage of. So I recommend you go to work and get your credit moving in the right direction. If you are in the 600 range you can have those scores up to the 640 range in no time... as long as you do the right things. Find somebody who knows what that is and will take the time to get you there.
Best of luck to you.
REALTORÂ® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
Call me at 972-689-0271 and I'll provide you with all his contact info.
I have seen people pay down credit cards $300 and get 30 points on their FICO.
If you would like some supporting documentation out of my book about credit, email me and I will reply with a free copy.
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
If you are working with a Realtor already, you should get with them and they can direct you to a couple of lenders they use on a regular basis. If you are not working with someone I would be happy to talk with you and get you in touch with a lender I use.
Keller williams Realty
BONUS, I also rebate all my clients a $500 cash back rebate check at closing which means your total out of pocket to move into a new home would be $0 Call me at 817-965-1022 and I would be happy to answer any questions you have.
My phone is 657-269-5720.