Whats with the FHA?

-----Original Message-----From: Anonymous To: Mortgagism Sent: Tue, 10 Apr 2007 9:38 AMSubject: RE:
#I , was just reading your blog.I have a question ,your right with the fallout of all the hard to do lenders whats with the FHA ..give me an example of someone i could send you to get pre qualed FHA.The bulk of our leads as you know where low credit scores or hard to get done loans .With the depletion of all of the programs our business has come to a screeching halt .I am more then grateful that I get leads everyday but what good is it if they all have bad credit.I guess in a nut shell Im really just asking for you to exsplain to me what kind of person qualifies for FHA and who should I be sending your way?


Answer: Anonymous

FHA loans are the easiest type of real estate mortgage loan to qualify for. The FHA guidelines for loan qualification are the most flexible of all mortgage loans that require less than 5% down payment.


Two Years of steady employment, preferably with same employer.
Last two years Income should be the same or increasing.
For refinances credit report should have less than two thirty day lates in last two years.
Can be in Chapter 13 and 2 years out of Chapter 7 Bankruptcy
Your customer can have no credit score at all alternative credit can be used, utility bills, buy here pay here, rental or lease accounts, etc.
Most collections ignored; excluding judgements and tax liens
Gift funds for down payment and closing costs are allowed
Up-front Mortgage Insurance Premium can be financed
Less cash out of pocket required
The lowest down payment (as low as 3%, never more than 5%) requirement of any non-subsidized financing program
Non-occupant co-borrowers are allowed for qualifying purposes
"Kiddie Condos" allowed - high loan-to-value loans for the purchase of condominiums meant to be used by children at college. Assumable, with qualification of buyer

Please feel free to ask any other questions you may have!