Home Buying in 30341>Question Details

Rick Isaacs, Home Buyer in Alvin, TX

I need FHA primary residence Mortgage. I have good stability 13 years owning business,20% to put down , decent income, poor credit TU 624, Equifax 559

Asked by Rick Isaacs, Alvin, TX Wed Nov 13, 2013

Help the community by answering this question:


Yes! I have partnerships with Lenders that can do loans (refi and new purchase) with scores as low as a 580. If you would like a referral to a reputable lender please email me or visit our website.
5 votes Thank Flag Link Fri Nov 15, 2013

I know a great lender that can help and even teach you how to raise your credit score so you can get a

into your home. You can reach me at 404-769 -8666

Warm regards.

Claudia Dror
1 vote Thank Flag Link Wed Nov 13, 2013
Hi Rick,

I just cut and pasted your question and sent it to the lender in our Keller Williams Midtown office. This is the cut and paste of her response.

Yes, we can now do FHA down to 580 middle credit scores WITH compensating factors so I would still of course need a full application in order to fully Pre Qualify and Underwriting to Approve. Ill be happy to call or email if you want me to follow up with them so just let me know.

If you would like to see what Reina can offer to you please call 404-388-0400….which is my number.

Good luck,
Patricia Queen
Keller Williams Realty Atlanta Midtown
1 vote Thank Flag Link Wed Nov 13, 2013
Thanks Patricia , working on score.
Flag Sat Nov 16, 2013
Hi Rick

You should be just fine.

Talk to many lenders responding to your question or
Talk to the bank with you bank for business and or personal

Good luck.

1 vote Thank Flag Link Wed Nov 13, 2013
FHA are high cost loans. Prior to being a Realtor I worked as a loan officer specializing in borrowers with less than perfect credit. With 10 years of experience I can tell you with 20% down you can avoid mortgage insurance. Some lenders depending on program would be able to get you a more competitive rate as well. The idea is to have 4 trade lines open and active for 12 months. Whether it is a secured credit card or store card that reports to all three agencies the idea is to get that FICO or middle score above 620. Keep your balances on your accounts 30% of their limit. You might also want to dispute any late payments or discrepancies between between now and January 1st. By law if the creditors do not respond in 30 days they are required to remove the blemish from your credit report. It is a good time because of the holidays between now and New Years which makes it difficult for them to respond. Often, this will result in your credit being restored to a higher score. You must close quickly after the revision being that they can put it back on your report after a few months. You can get an example of a dispute letter on annualcreditreport.com. Also watch your debt to income ratios. Being a business owner can work against you if you write off all of your expenses to where you are showing lower net income. Great for tax purposes not so much for qualifying ratios. In order to qualify for a stated income loan the rates as well as the requirements are not as flexible as they were when I was in banking. If you are serious about getting on the right track I am at your disposal.

Eric Reichelt
Keller Williams
Office phone: 7724190400
Mobile:754 246 0331
Email: ereichelt@kwrealty.com
Website: http://ereichelt.kwrealty.com
1 vote Thank Flag Link Wed Nov 13, 2013
Richard, Glad I was able to shed some light on this. As far as sub prime the market for that fell through in 2007. I had a $2 million pipeline I was unable to close due to lenders discontinuing programs that would help borrowers like yourself. My advice would be to get 4 trade lines open and active. When sitting down with your accountant make sure he leaves some meat on the bone so we can show on your Schedule E that we can prove that you have enough income to meet the required qualifying ratios. Get with your spouse and go through late payments, collections, and charge offs. Those need to be disputed first and foremost. Scrubbing the credit should take top priority. There are some very thirsty realtors out there that will tell you they can get this done, in all actuality they are not qualified to make the call. Lets work on your credit so you will be able to qualify for a program that will fit your needs as a borrower. Feel free to contact me so we can address this further.
Flag Fri Nov 15, 2013
Thanks Eric, Experian is middle score 571. I have borrowed against a $10k CD 8 mo. ago. I will get a secured credit card. Wife is 624 middle, but works with me, but S Corp only my name 100% so not sure about POI for her. So I don't want FHA due to mtg. ins. expense, so I look for Conventional loan for sub prime. Know any Mtg co.sub prime for when I get score up.
Flag Thu Nov 14, 2013
If you only have two credit scores, then that would be too low for an FHA mortgage. It would be very odd that you would not have 3 cedit scores. An FHA mortgage is going to require at least a 580+ score. For an FHA mortgage, most lenders require a 640+ credit score since 2008/2009.

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. FHA loans will allow a seller contribution toward closing costs/pre-paids of up to 6% of the sales price.

Once you are ready to purchase, 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 to get started.

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 mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203(k) Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
1 vote Thank Flag Link Wed Nov 13, 2013
Hi Rick,

We can help here.

1 vote Thank Flag Link Wed Nov 13, 2013
Mr. Rick, please give me a call so I may assist you in getting this lovely home you desire. I will be able to point you in the right direction to get your credit where it needs to be to qualify.

Tiffany Hankerson
Associate Broker
Drake Realty
404-433-4184 Direct
770-565-2044 Office
866-260-7180 Fax
1 vote Thank Flag Link Wed Nov 13, 2013
If anything is holding you back it would be your credit scores. The lowest credit scores that are usually accepted is around 580. I suggest that you spend some time working on your scores. The simplest way to fix your credit is to pay off your debt and revolving credit balance on time. Once you get your scores above 580 then you will have a better shot. Also, for an FHA loan only 3.5% down is needed but you will still need money for closing costs and reserves as well. Well I hope this helps! If you have any further questions or if you would like a loan, feel free to contact me! Good luck! Brian Nguyen Sr. Mortgage Banker Phone: 949.667.2887 brian.nguyen@nafinc.com
0 votes Thank Flag Link Mon Feb 10, 2014
I can definitely help you out, I have relationships with lenders that can go down to a 580 for FHA. Visit our website for a free referral to a lender that can help you..
0 votes Thank Flag Link Wed Nov 13, 2013
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