Down Payment: Zero if house purchase price is less than or equal to 75% of the house value.
Rate: Starts at 9.5%
Term: Amortized over 30 years, balloons in 3 to 5 years
Use: For primary or investment residential property or Commercial
Minimum loan amount: $90,000
Minimum score: Credit does not affect approval but does affect rate
Requirement for approval: The main thing is that you have an income (W2, Tax returns or average of 3 months bank statements can be used).
Application Fee: Varies depending on program selected (ranges from zero to $895)
With collection accounts, most of the damage is done when they are initially placed on your credit report. Some collection companies are now reporting you are late each month the debt goes unpaid. This continues to drag on many peopleâ€™s credit scores each month until the debt is paid in full. Until you do that, your credit score has little chance of improving.
In exchange for paying the collection account in full, you can try to negotiate to have them completely remove the derogatory item once the payment is received. Some collection agencies will do this, while others will not. You will just have to ask each one and see. If they will not remove it, just having it paid and closed will help in the long run.
To build positive credit, you typically need to have 2-3 trade lines reporting for 12-24 months. There should be no late payments or other derogatory items reported in the last 12-24 months.
Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. It is required that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.
The 3.5% down payment can be from the borrowers own funds or it can be gifted from a family member. Two months of reserves for the PITI (Principal + Interest + Taxes + Insurance) payment + HOA Dues will be required. This must be from the borrowerâ€™s own funds and not a gift.
Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.
Jeffrey S Spatz
GMAC Mortgage | Mortgage Loan Officer
1170 Peachtree Street NE, suite 1200, Office 1230, Atlanta , GA 30346
M + 404 309 4936 | F + 866 846 8474
A lender's hard inquiry could lower your credit score.
You should consider pulling your own report (which will have no impact on your credit scores) at http://www.AnnualCreditReport.com. Validate that everything appearing there is accurate. If anything appearing there is inaccurate, write to those creditors (certified mail, return receipt requested) and ask for an explanation. Please do not use that enticing dispute button there on the screen to challenge anything you find to be questionable. Open disputes must be resolved before an FHA loan will be approved.
Consider an eight-hour local home buying class. You'll find HUD-approved Housing Counseling Agencies at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?&webListA The counselors will be a great resource for you during the home buying process and the certificate is often required for the different down payment assistance programs.
Hope that helps.
Georgia Real Estate Brokers Associate, REALTORÂ® Certified Affordable Housing Counselor
Keller Williams Realty Atlanta Partners