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FHA: Buy a home with a 580 FICO!.

Real Estate Agents and Builders turn to Southwest Funding, LP of Indianapolis to get new-home buyers pre-approved and to closing. Buyers rely on agents for their recommendations of lenders who can "get the job done" in this crazy market.

Southwest Funding, LP of Indianapolis has been accepting homebuyer applications at it's 2105 N. Meridian location for FHA loans from borrowers with 580 Ficos for several years now, buyers at this FICO level are eligible for maximum FHA financing. 

The minimum FICO remains at 640 for every other lender in the area.

Home Buyers are required to have 3.5% down with Fico Scores from 580-619 and the down-payment can be in the for of a gift or from down-payment assistance.  For all borrowers the Seller can contribute up to 6% towards closing costs and pre-paids.

The 580 FICO is available on all FHA lending products: HUD properties buyers only need $100 down, buyers can utilize the FHA 203k program to renovate the home, buyers can purchase a Condo; but it must be FHA Approved, there are a plethora of FHA lending programs the easiest way to find out which program is best for you is to 317-925-1877.

The Southwest Funding office located in Indianapolis at 2105 N. Meridian is a Purchase Money office only and is fully capable of handling refinance business, but prefers to deal strictly with first time or repeat homebuyers.

By offering lower FICO requirements to FHA borrowers opens up an avenue that may be as high as 60% of real estate agents business in todays' market.

To speak with one of Southwest Funding's licensed mortgage originators about the 580 score FHA program call 317-925-1877, this is a most needed program in this housing environment.

If you are reading this article pass it along to a Real Estate Agent or Builder they need to know this.

Resources:

NAR believes pristine loans are the result of excessively tight underwriting, not sound business practices. The GSEs and FHA have a public mission to provide mortgage liquidity to qualified home buyers, including low- and moderate-income families and first-time homebuyers. This mission is being impaired by limits on the availability of credit. NAR calls on all involved to reassess and amend their policies accordingly. This will not only help individual, well-qualified potential borrowers, but also the entire housing market. In addition, NAR has identified specific recommendations for adjusting the current unduly restrictive policies. Read full article go the NAR

Tight Credit Standards Halt Some Buyers
Lenders continue to reject borrowers with otherwise good credit when they diverge from the standard approval checklist.

Would-be borrowers facing the most problems include the self-employed.

One reason bankers are so nervous are the standards held out by Fannie Mae and Freddie Mac. Not only are Fannie and Freddie demanding credit scores above 720, they are refusing to buy back defaults when the original mortgage application had small discrepancies from the norm. To avoid losses, lenders are being extra careful.

The result is that some borrowers are being rejected for problems that seem completely inconsequential.

Source: The Wall Street Journal, James R. Hagerty and Nick Timiraos (07/10/10)

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Credit Repair is Illegal: Now What?

Recently, I posted a note about Credit Repair is Illegal. The post read – Credit Repair companies can’t deliver an improved credit report for you using the tactics they promote. It’s illegal: No one can remove accurate negative information from your credit report. So after you pay them hundreds or thousands of dollars in fees, you’re left with the same credit report and someone else has your money.

The Credit Repair Organizations act prohibits payment before any promised service is "fully performed." Services must be under written contract, which must include a detailed description of the services and contract performance time.

With all that said, there is a program that is available it is called a Rapid Rescore. This is it how it works, you have a buyer who is looking to buy a home. Their credit score is 622 but your buyers; lender credit underwriting guidelines says 640 or no deal.

Call me I`ll send your borrowers credit through our What-if Simulator, it will tell us the highest and best chances of improving the buyers credit.

Because of the new program, I am in the middle of closing two deals that could have went south, thanks to you they are CLOSING!!! This has been a great selling tool. Awesome product, best scoring the first time around means another potential closed Buyer! Thanks again. --“Malvin, FC Tucker” 

What does it take to get my Buyers started? As of this note the costs for this service is $30 per tradeline/per bureau. For example, to correct a Orchard Bank credit card account tradeline at Equifax, Experian & TransUnion would cost a total of $90 paid directly to the bureaus not the lender. That could be just enough to get the buyer approved and can possibly increase the credit score by as much as 50 points. 

Acceptable documentation for this process

• Letter from Creditor or Collection Agency or an online statement—Letter must be from the company reporting the information and on company letterhead with Signature, telephone number and full account information including: The date the account was paid in full or closed if applicable.

• Court Issued Documents—Required for all public record information updates: Release or satisfaction of judgments or liens stamped by the court house
• Bankruptcies— require a letter of discharge and schedules D and F

Acceptable documentation for changing an entry on a credit report

• Letter from the creditor reporting on the credit report. It must be on company letterhead.
• Western Union quick collect receipt.
• Printed receipt from creditor reporting on the credit report.
• HUD1 settlement statement for mortgage loans only.
• Bankruptcy papers. The creditor listing as well as the discharge letter is required.
• Divorce Decree papers are accepted but are not enough to delete an account or change the manner in which it is reported. The account will be annotated with ** BORROWER NO LONGER RESPONSIBLE FOR THIS ACCOUNT PER DIVORCE DECREE **

To get more information regarding this program contact me:

Always positive information, never negative, always on time and keeping you informed on what's new in the processing and underwriting of your mortgage loan application.

Robert B. Summers

Senior Originator

NMLS ID: 231330

Southwest Funding, LP Branch 777

2105 N. Meridian St. Suite 101

Indianapolis, IN 46202

317-925-1877 Office

317-229-6430 Fax