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FHA mortgage loans for lower score borrowers

April 9th, 2014 by [shareaholic app="share_buttons" id="27157108"]

As the economy is strengthening and the economy is starting to get back on its feet, the mortgage industry is starting to loosen guidelines as there is money to lend, not as money homes on the market.  This is creating a need for investment money to be lent as there are not as many transactions in the market place.

FHA loans are being allowed with lower credit (FICO) scores.  Scores under 579 and under require a 10% downpayment. 580 & higher require only a 3.5% down-payment.  You are allowed to have one housing late payment in the last 12 months. A late payment is considered 30 days late.  Consumer lates are limited to one 30 day late payment in the past 12 months.  Open collections and judgements must be paid except for medical collections or collections older than the statute of limitations for collecting against the collection account.

Other benefits include not requiring reserves in the bank, higher DTI (debt to income) ratios.

Ben Gerritsen is a mortgage lender in Utah and Texas. He lives in the Ogden, Utah.  He is both a broker and mortgage banker.

If you are looking for a mortgage loan, whether FHA, VA USDA or conventional, Ben has the experience with each of these loan programs.  Ben and his team close loans in as little as 2 weeks.  Ben can be reached at: 801-747-9176

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