Profile picture for natewolf

Heard about new FHA program for Under 600 Credit Scores?

I just attended a meeting with a NATIONAL lender. They announced a new program for borrowers with under 600 credit scores using FHA financing. 3.5% to 5% Down Payment Programs available. And 500+ scores with 10% down. A 575 score only requires 5% down!
  • February 15 2011 - Charlotte
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Answers (23)

good luck with that.

1. people with those scores need to get their financial house in order before buying a house.
2. good luck finding a loan officer willing to work with them. especcially after April 1st.
  • February 15 2011
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Profile picture for dacolan
Any chance I can get that as an Option ARM with no documentation?
  • February 15 2011
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Profile picture for wetdawgs

Is this a program where lenders are required to lend with those criteria, or is it still discretionary?

  • February 15 2011
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Profile picture for workabee
Sweet deal. Deadbeats got a chance to buy again and we all know how that ended up last time. Here comes the new bubble.
  • February 15 2011
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FHA loans have never been score driven loans and are not now. Yes, HUD guidelines allow a 500 score with 10% down and maybe 2 or 3 lenders in the country will follow that but it does not mean the borrower will get approved. It would be a needle in the haystack that someone has a 500, 510, 520, 530, 540, score and at the same time have " credit " good enough to approve.  
  • February 15 2011
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Please tell me the National Lender. I'd like to see for myself.
thanks...
  • February 15 2011
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Let's not be so fast to put this housing bubble bust on the people with lower credit scores....these people was not the ones buying $300k- and up homes that were high end that went into foreclosure...Almost half of the high end builders had to sale there homes for far less.Most of the lower score buyers who had FHA fixed rate loans are still in their homes. Let's see how this works.

  • February 15 2011
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Wells Fargo is offering this program.  
  • February 16 2011
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I have clients that are in the 500 bracket so providing them with an alternative solution will open up doors for them.

  • February 16 2011
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Profile picture for Lady Chattel
So, if I have a credit score over 800, will the bank pay be a huge lump sum to buy a house :-p
  • February 16 2011
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Profile picture for hpvanc
Can I sign up for Lady Chattel's program retroactively? 

What programs are available for people with 800+ credit scores, 20%+ down and DTI below 25.  Aren't those the kind of buyers that would be profitable to reach?
  • February 16 2011
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I have had new construction builders refer this program to me and my client...but, when I actually ask the lender, they tell me that those are the correct FHA guidelines.  Then, they proceed to tell me that lenders won't actually lend for credit scores that low.  Talk about frustrating and confusing.  I would love to hear of a lender that will actually work with this program, as I have a lot of clients sitting on the fence.  Please let me know if it works for you!! 

Good luck!!
  • March 17 2011
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Profile picture for klarek the realist
Nathan, you think that's a GOOD thing?  What sort of sleeze is being peddled here?
  • March 17 2011
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We have an investor that goes down to 580. The rates are typically a .50% higher, but who going to complain with credit scores that low?
  • March 17 2011
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Thank you for this great information. Do you know the lenders offering this product?
  • April 16 2011
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Wells Fargo is the bank offering this product.
  • April 16 2011
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Profile picture for user4909275

Wells Fargo is the worst Bank ever, they may make a buyer think they will accept them, however they stall and stall, until they allow you to loose the home then they come back with a denial.

  • March 31 2012
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Profile picture for Sharon Lewis
I would imagine most lenders are offering this program. Ask Suntrust to match or any of your preferred lenders....bet they can!
  • April 03 2012
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Profile picture for govagent1
Those programs may or may not exist.  They do not in Michigan and if they do their is a rate attached with them and cost.

Be aware!!!!!!!

I do free credit repair for any client that needs it. I have 35 years in banking and it has served me well.  I would strongly incourage anyone with a score below the 620 minimum to get their score to 640 or higher.  I have been able to get 3.75% rates with 620 scores.

Depending on someones credit file it takes 45 days to a year or longer to correct credit issues and it works only if people stay with the program and and have no unemployment to mess it up if that's where thier income is coming from.  Some credit file take longer if they have recent bankruptcies, forclosures, judgements, collections etc.
  • April 03 2012
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Profile picture for user1298700
you're all a bunch of judgmental jerks  in 2003 I broke my shoulder and was out of work for 4 months went bankrupt to save my home they got a relief from stay and sold my house... 10 years ago... I still have 500's credit score 2 secured credit cards and a car loan all with no late payments or over limit

before all this I had 2 commercial mortgages and 3 residential all paid on time ...and in full on time when I sold them

so I am doing EVERYTHING  right to get my credit back on track and then to read CRAP! like these posts about getting my credit in order before I can buy a house again I HAVE DONE THIS AND STILL CANNOT GET A LOAN so to all of you all condescending f-in a-holes shove it....
  • June 26 2013
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Profile picture for sunnyview
I do not understand why your credit score would be in the 500's 10 years after a bankruptcy. That information along with the old lates should have come off of your report. Are there any other things like new lates or high balance to credit line cards that might be impacting your current score? Things happen in people lives that are unplanned, but there are things you can do now to raise your score so you can buy again.

You need to apply for an unsecured card even one with a small limit to reestablish your credit. I hear that Orchard has a good card with decent interest rates, but there are other ones too.

No one should treat you with disrespect. You had a bad patch, but after 10 years you can turn your score around without paying anyone or taking their crap if you find out how. Hope the links help.
  • June 26 2013
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Profile picture for jasonwilliams7914
I guess all of you still believe in Santa, lol.  Thanks to Oliar and his administration hardly anyone in the money lending business have clients with credit scores of 750 and above.  You must remember that not everyone with a 500 credit score are bad people.  Most lost their homes due to scams by fraudulent lenders.  See the historic settlement  Looks like lenders were the BAD guys not the buyers.  Lending money to boarder jumpers with no credit is the real injustice... but hey..keep blaming the real Americans who worked their butts off trying to live the american dream who got scammed by these jerks and, lost everything!
  • March 09
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I had a 650/630/610  credit scores when I was told  my mortgaged had been secured... However, closing was delayed due to the appraised came in $15k than contracted price.  During this delayed time the initial credit report they say expired and new report was needed.  This new report displayed a lower credit rating due to inactivity of revolving credit account, as I was told to limit my purchases.  Why did my deal fail and I am looking at a lost of possibly $5000.  which I definitely can not waste....
  • March 09
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