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fha loans under 620..

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cwil31
New Contributor

fha loans under 620..

for those who need it, there are a couple of banks that  still taking 580 credit scores for a loan.

 

american financial resources... your back in ratios has to be under 44%... rate is 5.5 currently

freedom mortgage

first american mortgage trust...

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tbone74
Regular Contributor

Re: fha loans under 620..

Here's an email I received recently from a US Bank rep:

 


Hello, 

I have outlines a brief description of our program below.... 

Note: 
The goal of US Bank is to originate and service quality loans that surpass the overall Industry performance resulting in lower 
delinquencies and foreclosures. This is in the best interest of US Bank, investors, and our customers/borrowers. 
Therefore, US Bank may have additional guidelines that are more restrictive than standard government loan requirements to 
address your credit history, debt to income capacity, and adequate collateral that we believe are critical to achieving this goal. 

I have outline our credit requirements below to help you determine if your 
credit will be eligible. 

                                                                  
Guidelines & Credit Score 580-600 
10% Down Payment Required for Credit Scores 580 - 600  
 
Above 600 Credit Score is eligible for standard FHA financing. 3.5% Down
Zero late payments in the past 12 months on Installment Accounts 
Two 30 day late payments in the past 12 months on Credit Card Accounts 
No Collections or Charge Offs within 12 Months 
All Collections & Charge Offs must be paid   
Monthly debt including new housing payment cannot exceed 45% 
of gross monthly income.                                                                                                                                                 

2 Years must have passed on Ch.7 Bankruptcy 
3 Years must have passed on a Foreclosure and/or Short-Sale                                                                            
 
Settlements on collections are Ok.                                                                                       
Alternative Credit is acceptable                                                                                                 
Alternative Credit is defined as any accounts that the buyer has 12 or more current payments 
Buyer will need 1 (one) rental account                                                                                                   
Buyer will need 3 (three) alternative credit accounts 
The following qualifies as an alternative trade line:                                 
Utility Bills                                                                                 
Water                                                                                                       
Insurance – auto, life, rental                                                                 
Gym Membership                                                                         
Cell Phone                                                                         
And/Or any account that are paid monthly and have 12 current on-time payments to 
For each alternative trade line the following information is necessary on each account: 
1.  Name of the Company                                                                 
2.  Account Number                                                                         
3.  Account Phone Number                                                                 
All accounts will be verified by the banks representative



Starting Score: TU04: 603 EQ: 613
Current Score: TU04: 667/EQ: 670/ EXP(LO Pull): 676
Goal Score: 710


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Message 2 of 4
ShanetheMortgageMan
Super Contributor

Re: fha loans under 620..

Not surprisingly, except for US Bank, all their FHA default rates are above the US average of 4.81%, AFR's is nearly twice the average.  US Bank is less than half the US average, pretty solid underwriting company.

 

You can check any HUD approved lenders FHA default rates at https://entp.hud.gov/sfnw/public/

 

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 3 of 4
llecs
Moderator Emeritus
Moved:

Re: fha loans under 620..

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