Wednesday, March 30, 2011

Buy a home with a 580 credit score

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

Andy Williams
Abacus Regional Mortgage