FHA mortgages are now available for buyers with credit scores as low as 580. There are three acceptable reasons for financing buyers with such a low credit score:
1. Loss of employment due to plant shutdown, long term layoff or downsizing.
2. Death of a working spouse which contributed to a financial hardship.
3. Long term illness
The minimum required down payment is 5% which must be the borrowers own money. In addition, the seller can still pay up to 6% of the selling price to pay for the buyers closing costs. The buyer must show proof of 2 months mortgage payments left over in reserve. This left over money can be in the form of a gift from a family member. Borrowers must furnish 12 months most recent canceled rent checks to prove payments are on time.
Call me with any questions at
484 695 5972
Abacus Regional Mortgage