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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)