Friday, March 25, 2011 - Article by: john cashion -
FHA Purchase and Refinance to 600 credit score!
FYI...We have one of our primary investors that is relaxing their credit score requirements on FHA refinances and purchase loans. Starting April 4th Infinity Home Mortgage can now accommodate borrowers with a 600 credit score and above!
Their are significant caveats to this program, here are a few:
The property must be single family residence, condominium, or PUD
Borrower's may not have had any short sales, "settled for less than amount owed", public records, judgments, bankruptcies, foreclosures, or tax liens in the most recent three years
Borrowers may not have had any collections in the last 12 months other than medical
no 30 day late pays on mortgage, rent, or installment debt in the previous 12 months
No more than one 30 day late pay in the last 12 months on revolving debt
overtime, bonus, second job, income from part time employment, commission income, and self employment income cannot be used to qualify unless the borrower has a two year history of receiving this income. Must be consecutive years but does not need to be same employer.
Gift funds for down payment are eligible from a family member
This is a stark reduction is the severity of underwriting guidelines. Perhaps this is a trend of what is to come. Of course, most people with a 600 score will not be able to clear these hurdles. This loan is not designed for the person that doesn't pay their bills. This loan is designed for someone that had a medical emergency or a divorce situation and could not maintain a decent credit score under the weight of all of the bills.
If you have clients or you yourself has been declined recently please call me!
Mortgage Banker & Regional Manager
Infinity Home Mortgage Company
250 Gateway Plaza (route 10)
Dover De 19901
800-587-2762 Ext 320
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