Whether you are buying a home to live in, or rent out we have loans that will allow you to buy the home and rehab the home at the same time with no more money down. If you are buying a home to live in we offer rehab loans with as little as 3% down…
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FHA Loans down to a 500 credit score with 10% down.
Almost all lenders require a 620 credit score to get an FHA mortgage. Most lenders use an automated system to get the customers loan approval (Total Score Card) which runs through DU (Desktop Underwriter) or LP (Loan Prospector). We can get you a mortgage with a 500 credit score if you have 10% to put…
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No income verification loans are back for investors.
If you are an investor you know the challenges of showing income on your tax return when you own investment properties. With this new product the underwriter will only look at the income the property is producing for rent. This program can be used for purchases and refinances. This product can be used for a…
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New FHA changes, could affect you.
FHA has completely re written their new handbook called the 4000.1. The new FHA guidelines will affect everyone, which will make it harder to get an FHA loan in most situations. Here are some of the more important changes: Student Loans. Old Rule- FHA would allow the student loan payment to be excluded if the…
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3.5% down payment with a 580 credit score.
FHA allows you to buy a home with only 3.5% and a 580 credit score. Most lenders require 620-640 credit score, but there are lenders that will go down to a 580 credit score.
When you have a 580 credit score your debt to income ratios are limited, compared to a 620 credit score. Your maximum debt to income ratio is 50% with 2 compensating factors. It you have 1 compensating factor you cannot go above at 47%. If you have no compensating factors you will not be able to go above a 43% debt to income ratio. There a 5 compensating factors the FHA allows. They are 3 months of your mortgage payment, enough residual income, no other debts besides your new mortgage, rent is same as your new mortgage payment & you have other income that we are not using to qualify you. If your debt to income ratio goes above a 43% with a score below 620 you will have to do a manual underwrite. Barclay Butler Financial does these loans. # 580creditscore, #3.5%down.
You can buy a home 1 yr. after your Ch. 7 bankruptcy is discharged.
If you had to declare bankruptcy because your income was reduced by at least 20% you can qualify for the FHA Back to Work program. Which allows you to buy a home 1 yr. after your Ch. 7 bankruptcy was discharged.
The income reduction had to be at least for 6 months. You will also have to get counseled 30 days prior to applying for a mortgage. Your credit has to be good since the bankruptcy. You cannot have any lates on housing history or installment loans (auto loans etc..). The min credit score needed for this program is 580 if you want to put down only 3.5%, if you have more to put down you could go as low as 550. This program is only for people who had a reduction in income. Barclay Butler Financial Inc. is currently doing these loans, they are manually underwritten. Please contact me with any questions.
Why using a credit repair company before getting a mortgage is a bad idea.
Credit repair is helpful if there is a lot of incorrect information on your credit report. If you have hired a company to dispute all of your bad credit, it most likely will delay or stop you from getting a mortgage. Most credit repair companies will dispute everything on your credit report that is derogatory.…
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1 day out of a foreclosure and you could buy a home!
Yes it is true you can buy a home 1 day after your foreclosure. Your home has to have been already foreclosed, it cannot be in the process of being foreclosed. If you have a 660 credit score and 20% down you can buy a new home. You can get either a 5/1 or a…
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What is the fastest way to rebuild your credit or increase your credit score.
The fastest way to rebuild your credit score or increase it after a BK, foreclosure, deed in lieu of or a short sale is to get a credit card most likely it will have to be a secured credit card.If you happen to be a person without any credit this will work also. A credit…
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How do collections and charge-offs affect you getting approved for a FHA mortgage.
It used to be that collections and charge-offs did not affect you getting an FHA mortgage, but with the new regulations, they can stop your approval in its tracks. Medical collections & charge-offs are still exempt to the new rules, they will not affect you except for your credit score going down. Now with the…
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