Home Buying in Woodstock>Question Details

Fran Tanner, Home Buyer in Canton, GA

After reading a bit today about loans, it appears that are FHA loans out there for people with Bad Credit. Yes, I am a product of this economy.

Asked by Fran Tanner, Canton, GA Tue Feb 12, 2013

Have had great credit until 9 years ago. Now, I have just been awarded a past due settlement which gives me a nice down payment for a home. My monthly payments will go on until death, so I am covered that way. I read about FHA loans for people with bad credit....do any of you know the details of this mortgage? Found a home that can use HomePath mortgage, but that is totally unclear to me as it seems to be tied to FHA too? Or am I confused...?

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HI Fran,
An FHA mortgage is not a program for people with bad credit. Even an FHA mortgage requires that all borrowers meet minimum credit standards. For an FHA mortgage, most lenders require a 640+ credit score for the last 2-3 years now.

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% minimum 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 borrower’s own funds and not a gift.

A HomePath mortgage has much more stringent requirements that an FHA mortgage does.

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
Prospect Mortgage
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) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Tue Feb 12, 2013
Thank you for your reply. After reading your reply, I realized I filled out an application with Prospect Mortgage today. Different address, but I did fill out one with Prospect. Thank you!
Flag Tue Feb 12, 2013
HI Fran,
The property could have all what you are talking about. Qualifies for Homepath does not mean that you have to avail only that loan. If you have a nice down payment there are other options for you,FHA being one of them. There are ongoing changes to these programs and each property has to qualify for the type of loan that you are looking to get.
If you would like me to have a look at the details of this property that you are interested in please send me the details in an email:mona4homes@gmail.com . Mortgage consultants can best answer all your loan queries and we have some experts on our team.
0 votes Thank Flag Link Tue Feb 12, 2013
You can get a HUD home with a large enough down payment with not so good credit. I have a Lender that I can refer to you for you to ask questions regarding that. A HUD home would be a FHA loan.
0 votes Thank Flag Link Tue Feb 12, 2013
Susan, I thought a FHA loan one had to have at least a 620 or 640 credit # ?
Flag Tue Feb 12, 2013
A HomePath Mortgage offers these features:

•Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
•You may qualify even if your credit is less than perfect available to both owner occupants and investors
•Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
• No appraisal required
• No mortgage insurance (Ask your lender for cost details on loans without mortgage insurance.)
The HomePath Renovation Mortgage This type of financing features:
• Financing to fund both your purchase and light renovation
• Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
• No mortgage insurance (Ask your lender for cost details on loans without mortgage insurance.)

For more information, go to http://www.homepath.com or visit a HomePath Lender

There may be other options as well; call me with any questions.
0 votes Thank Flag Link Tue Feb 12, 2013
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