Good Morning! FHA is finally giving us some relief on disputed accounts. They have recently modified their underwriting guidelines regarding disputed accounts, and the automatic downgrade to a manual underwrite when disputes exist in a credit report. Here is how the new guideline reads… If the credit report reveals that the borrower is disputing any…
Good Morning! I covered this about 2 years ago, but I wanted to touch it again now for you. I have customers call me every day – worried that their Medical Collections will keep them from getting a loan. From a mortgage underwriting perspective – if you have Medical Collections that are over 12 months…
Good Morning! I have this situation come up again and again, so I wanted to address it once more… Did you realize that when buying a house from an immediate family member – the buyer doesn’t have to come out of pocket for a down payment with an FHA loan? (As long as it’s a…
Good Morning! Many of you know that I can do FHA loans for credit scores between 580 and 600. However, I wanted to make sure you aware of the two most important elements of getting an approval on this loan program for lower scores. 1) You need to have at least 2 open and active…
Good Morning! If you are considering paying off or paying down an account in an attempt to improve your credit scores – you should really consider using our “what if” program. It can save you time and money – and give you a valuable insight on the impact of paying off or paying down accounts…
Good Morning! I get asked every day what credit scores are needed for various programs. So… I wanted to give you a quick overview of the most popular loan programs, and our minimum credit scores for these programs… FHA – I can do FHA down to 580 credit score on a manual underwrite. If your…
Good Morning! Here’s a very useful solution that I’ve used successfully on borrowers that have high debt to income ratios on conventional loans. Last year Fannie Mae came out with a 45% limit on debt to income ratio if the loan to value ratio is over 80%. If you are over 45% on your debt…
Good Morning! I finally have a way around “disputed” accounts. You know when you dispute your credit accounts it’s always a double edged sword. …On the one had you can get them removed sometimes by disputing them. However, on the other hand if they don’t get removed you have a big “disputed” comment on the…
Good Morning! Finally it appears the mortgage market is moving back towards more reasonable lending guidelines. As of today I can now do automated approvals on FHA loans down to 600 fico scores! This is pretty huge. For a while I’ve been able to do FHA loans down to 580. However, this program has rigid…
Good Morning! If you are buying a house that needs minor repairs – but the seller refuses to do them – what do you do? This situation happens a lot, especially on bank owned homes. The simple answer is to use an escrow hold back. …an escrow hold back is a small amount of money…