Champion Realty Mortgage announced exciting news today about their FHA loan program for all purchase loans. Starting on January 15, 2011, the minimum FICO score will drop from 600 to 500.
According to Lewis “Lewie” Ivey at Champion Realty Mortgage, there are additional steps that must be taken to determine if a purchaser is eligible. But, this is great news for some qualified but credit challenged individuals looking to purchase a home at the currently low interest rates. Lewie added that, “My thought is that underwriting will not look favorably on clients who show recent late payments, collections or liens within the last 12 months. This new adjustment could be good news for those who have had a situation that greatly impacted their credit score (loss of job, divorce, health) and have since corrected the issue and are working on getting their credit scores up!”
Here is some additional information to keep in mind:
· Loan score 500-579 allowed with a maximum 90% LTV (10% down)
· Loan score 580-599 allowed with a maximum 95% LTV (5% down)
· Ratios limits will vary depending on the computer review decision. The strictest is 31/36 ratio and two months of (PITI) Principle, Interest, Taxes and Insurance reserves
· Seller contributions are limited to 3%
· Gift funds may not be used for the either required 5% or 10% down payment
If you would like to get more information on this program or have other questions, give Lewie a call directly at 410.224.7134.
Information provided by
Lewis Ivey, Loan Officer
Champion Realty Mortgage
A Division of HomeServices Lending, LLC
410.224.7134 Direct
https://www.homeloans.com/wfhm/lewish-iveyiii
All first mortgage products are provided by HomeServices Lending, LLC Series A dba Champion Realty Mortgage. Champion Realty Mortgage may not be available in your area.
