Ask the "Mortgage Man": BUYERS WITH CREDIT SCORES BELOW 620 ARE FINANCABLE...

Ask the "Mortgage Man": BUYERS WITH CREDIT SCORES BELOW 620 ARE FINANCABLE...: Does your lender finance anything  below a 620/640? FHA/VA/ USDA loans are all regulated by the government.  They don't truly have minim...

BUYERS WITH CREDIT SCORES BELOW 620 ARE FINANCABLE

Does your lender finance anything  below a 620/640? FHA/VA/ USDA loans are all regulated by the government.  They don't truly have minimum credit scores, but lenders have what is called overlays.http://www.thetruthaboutmortgage.com/what-is-a-lender-overlay/  These overlays are a set of rules specific to each lender.  Most lenders sell their mortgages in large pools to investors.  These investors set minimum credit score requirements for loans that they will purchase from these lenders.  Since each lender has different investors, there are different minimum score requirements per lender.

I deal with many different lenders, and I have a very reputable one who will go as low as a 550 score on all three types of mortgages: VA,USDA, and FHA.  Other lenders are required to receive approvals from an automated software system specific to the type of loan requested, in order to close and fund these types of mortgages. My lender underwrites the loan manually, which means that  they don't have to receive an automated approval through any of the government software systems. This allows me the ability to finance many more ready, willing, and able buyers.

In order to finance any of these buyers with sub 620 scores, they are required to provide 12 months rent checks evidencing they've paid all of the payments on time.  The lender will not accept rent receipts, money orders, or letters from a landlord/apartment complex.  In addition,  the buyer will have to furnish 12 months checks or a printout from at least one utility company to evidence timely payments.  The most common types are cable, internet, cell phone, electric, heat, and car insurance. Any of these will work, and the lower the score, the more utility references we may require.

If you know of anyone who may fit the description of a buyer who is capable of owning a home please have them call me.  I will give them an answer within 48 hours one way or another.

Andy Williams
President
Abacus Regional Mortgage
NMLS # 118317
(484)-695-5972
www.abacusmort.comhttp://www.abacusmort.com/

USDA loans are quicker than normal

As of last week, USDA has not only caught up in their underwriting department, but they are way ahead of their normal time frame.  They are taking only 2 business days from the time the final files are submitted to them for a final approval.  Most loans are closed within 4 business days of final loan submission. This means that buyers can move in to their home in much less time than usual.

For your next USDA loan, please call me.

Andy Williams
President NMLS 118317
Abacus Regional Mortgage NMLS 113984
484 695 5972

Ask the "Mortgage Man": What is with this QM change to lending?

Ask the "Mortgage Man": What is with this QM change to lending?: I've been in the lending business since 1986 and I've found out that things are always changing in this industry. Although guideline...