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.
Real estate professionals know more about the houses and the surrounding area. You will save time and money when you use a real estate professional.
Here are the benefits when buying a home:
Has the most information in one place about what is on the market, including homes listed by other professionals. You won’t waste time looking at unsuitable homes. Can help you find the home best suited to your needs size, style, features, location, accessibility to schools, transportation, shopping, etc. Can supply information on real estate values, taxes, utility costs, municipal services and facilities. Can suggest simple changes that could make a prospective home more suitable for you and improve its utility and value. Has no emotional ties to a home, can be objective about it and can point out its advantages and disadvantages. Acts as an agent between you and the seller to present offers and counter-offers until an agreement is reached. Is bound by a code of ethics!
Here are the benefits when selling a home:
Is knowledgeable of the market and gives you the quickest
exposure to the maximum number of buyers. Qualifies prospects as to their affordable price range and housing needs. Knows current real estate values and can help you set a realistic, competitive price. This skilled professional knows how to market your home effectively. Is familiar with the local home-loan market and can help you determine whether seller-assisted financing may expedite your sale. Can figure the net proceeds from your sale, taking into account items such as your outstanding loan balance, closing costs, and possible owner financing. Can tap an even larger market through referrals and marketing techniques. Frees you from the problems associated with showing your home. The real estate professional handles phone inquiries, appointments, showings, and negotiations of the contract. Maintains objectivity in presenting offers and counter-offers. Can familiarize you with the closing procedures by explaining them all in advance.Is bound by a code of ethics!
Remember before buying a home to get pre-approved. Contact Barclay Butler Financial Inc. www.barclaybutlerfinancial.com