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Browse credit cards from a variety of issuers to see if there's a better card for you.
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...
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
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/
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