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Why FHA Loans?
FHA loans are the most popular loan program for first-time homebuyers, borrowers with bad credit, homebuyers with high debt to income ratio, and borrowers with credit scores down to 500 FICO.
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This discussion was modified 1 year, 9 months ago by
Eric Jeanette.
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This discussion was modified 1 year, 9 months ago by
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10 Replies
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I have learned to make sure the agents involved, especially the selling agent knows what posting FHA-compliant home actually means. You will be surprised how many agents do not know what this means.
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Yes, why waste time? HUD requires safety, security, and habitable. If they are reading the home inspection report, the home inspector has all of these written on his report. The loan officer should never order appraisal until the home inspection report has been thoroughly comberd through page by page.
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FHA guidelines are extremely flexible and allow for credit scores down to 500. Unfortunately most lenders have their own overlays which limit how low they are willing to go when it comes to credit scores.
As you know, it is not just about the scores but also what is on the credit report. Sometimes disputes need to be removed, collections resolved, etc.
Finding a lender that can work with a 500 credit score may be challenging. However, an FHA loan will likely be your path to home ownership if you have poor credit.
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Carrington Mortgage and Mortgage Solutions of Colorado do a great job for clients with scores like this. As long as you have a good processor, these files are pretty easy to get to the closing table. =}
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Kim, what states are you available to contract process.
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FHA loans has lower rates than conventional loans and HUD has reduced the annual FHA mortgage insurance premium to 0.55 from 0.85%.
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I assume this is only on new FHA loans and won’t apply to current FHA loans correct?
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Kim, contact Wendy Lahn at wlahn@gustancho.com. I think you would be a great contract processor for Wendy. She is with Loan Factory and is a great loan officer.
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Yes. Or refinancing to new FHA loans. Rates are dropping and there will be alot of refinances coming on up. Lets talk after the holidays so we can talk about getting you busy, Kim.
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Have a safe and fun New Year weekend, Kim. talk to you soon.