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FHA LOANS WITH 600 SCORES

We are introducing a new program for FHA with scores as low as 600.  There is no catch! Most lenders are requiring a minimum of 640 credit scores to finance FHA, but Abacus can do much lower scores.  These programs are almost the same as the typical FHA mortgages with a few minor differences.  I am outlining the differences for both programs below.

If a borrower's credit score falls between 620-639, a maximum debt ratio of 43% is allowed.  You can't go to 45.  If a borrower's new mortgage payment (PITI) doubles what a borrower is currently paying in rent, they must show an extra 2 months mortgage payments in reserve ( IRA, 401K, etc.)
They can't spend every dollar on buying the house, as a normal FHA program allows.  You can still get the seller to pay 6% of the selling price toward the buyers closing costs, but the buyer's 3.5% down payment CANNOT be a gift.  They must show proof that it is from their own funds. 
If a borrower's credit score falls between 600-619,  maximum debt ratios may not exceed 33/45%.  In addition, the borrower must put 5% down payment, not the standard of 3.5%.  The entire down payment must be the borrower's own funds.  If there is a doubling of the mortgage payment compared to what the borrower is currently paying in rent, they must show proof of an extra 2 months mortgage payments in reserve (IRA, 401K, etc.). 

This is a great opportunity to finance people who have experienced a problem with their credit in the past but have cleaned it up and still show scores below what is the norm.  It also helps to enable borrowers with high credit card debt to be able to purchase a home before having to pay down their revolving debt. 

For more solutions to your mortgage needs please contact me on my cell, email me at andrew.williams@abacusmort.com, find me on twitter at #abacusmort or find me on facebook.

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

Is this the beginning of the end?

Interest rates rose this past week for the first time in months. With no real apparent reason, we received higher rate increases, sometimes multiple times throughout the day. Whatever the reason, I sure hope this trend doesn't continue. Friday they got better, so I hope with this being an election year, they stay low for at least the next 9 months. Already, there has been an increase in activity, with many more sales compared to last year at this time. The amount of housing inventory, even with the short sales and foreclosures, is shrinking. Good bargains
are going quickly, with multiple offers on some houses. Since the housing
market is showing some signs of improving,we need to keep this momentum going!

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

Is this another positive trend for the housing market?

Lenders have been talking for a year that they offer 95% conventional financing. Lets face it, we all said we have it, but now we really can say that it is possible to get it approved. The previous guidelines stated that it is only available in geographical areas where the housing market isn't in decline. Where in the United States can you find an area where the prices aren't falling? Until recently, buyers applied for 95% financing only to be switched in mid-stream to 90% or converted over to FHA at 3.5% down payment. Since I have had multiple 95% financed properties approved and closed, I can guarantee you that this program is alive and well and offered to buyers with 680 credit scores. As many reports have come out pointing to our economy going into another recession, this is one of many positive signs that we've had showing a boost to the housing industry.

Andy Williams
President
Abacus Regional Mortgage NMLS # 113984
484 695 5972
Pa. license NMLS # 118317