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2014-04-27 16:04:57
FHA Homes Loans w/ Low Credit Scores
FHA Home Loans For Bad Credit Scores

WOW! Just picked this post up from the Tooele blog that Chris does. 'FHA home loans for bad credit scores.' His post was aimed at people in his market in Tooele County, but when I asked him if the loans were available in Salt Lake, the answer was YES!

I get calls daily from folks that would love to buy a Salt Lake house now, but are working on building their FICO scores back up so that they can qualify. Generally the question is, how long will it take, or how high do i need to bring it up to before i can start looking for a home to buy.

 

Now it looks like I have a much better answer for my peeps.

According to Chris, FHA now has a home loan product that will lend money to home buyers with credit scores as low as 500.

  • Scores of 500 to 580 require 10% down payment.
  • Scores of 580 to 619 require down payments of 3.5% but gifted funds not allowed.
  • Scores of 620 to 640 require down payments of 3.5% and funds can be gifted.

As Chris points out in the following article, there are some other hurdles, but they are doable. Here is what he had to say,

New FHA program for poor credit! (FHA home loans for bad credit scores)

Like every other Tooele County Realtor®, we are always looking for good loan products for our clients. In this day and age of tight standards in the lending industry, it's especially difficult to find product for those that have had credit issues. However, thanks to a new program we've learned about from Valerie Ekins of Primary Residential Mortgage, the search may be over for folks that don't have a 640 FICO score. 

According to Valerie, the new FHA Choice program can make homeownership a reality for those with scores as low as 500.

Obviously, there are some hoops to jump through, but not insurmountable ones. 

FHA Loan Overview

For those with a FICO of 580-619, they still have a  regular FHA-required 3.5% down requirement, but it must be their own funds, meaning no gift funds. From 620-640, that 3.5% can be gifted. 

For those folks with a score between 500-580, a down payment of 10% is required, of their own funds

In addition, there can be no late payments or other hiccups in the last year with any of the 'Choice'. Admittedly, not an easy road, but much better than just hearing a continual 'NO' from every lender out there!

So, if you're looking for a home in Tooele County and have some credit issues, call Berna @ 435-840-5029. The American Dream is available to you!

 

So, if you are a home buyer from Tooele County and want more info, call Berna. If you are a home buyer looking to finance a home in Salt Lake County and your credit is less than stellar, but you are tired of waiting, call me @ 801-567-0946 and i will hook you up with a lender that knows how to do FHA home loans for bad credit scores.

Posted: Friday, April 25, 2014 4:49 AM by Gordon Sloan
 
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