Bloomberg reported that 33% of the U.S. consumers now have credit scores below 620. Since we have been originating FHA products for over a decade, we like the idea of finding a financing alternative for good borrowers that have been setback because of low credit scores. FHA insures second chance financing for purchase and refinancing FHA loans.
Bad Credit Options with FHA Home Loans
* DU Approve or Manual Underwrite
* Debt to Income Ratio up to 50%
* Late Payments Allowed on FHA Loans
* Disputed Accounts Ok if they meet the HUD guidelines
* Verification of Rent
* Homebuyer Education Course
* Bad Credit OK with a 10% down payment (500-579 FICO )
* NO FICO borrowers = 3.5% down payment!
These are FHA mortgages, so all standard FHA guidelines apply – BK 2 years, FC 3 years, Short Sale 3 years, etc. Our lenders also provide loan programs that allow manufactured home loans up to 90% LTV and 2 acres. Even more interesting than that might be the fact that we have a California mortgage with down payment assistance available to qualified borrowers. This down-payment assistance loan programs only require 0.5% down payment on properties financed in the state of California. Our loan agents may even be able to get you approved with no credit score if you can come up with a 3.5% down-payment. If they meet FHA loan requirements for alternative home financing solutions, we have purchase and refinance programs with low fixed interest rates.