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jeff4567
1607 Posts |
 Posted - 01/30/2008 : 12:13:56 PM
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| I jumped back on the FHA bandwagon a few months ago after not having access for a few years. I have customers and leads who used to be considered subprime (mortgage lates, collections, etc) and wondered if it is worth trying them as FHA. I have gotten a few through FHA so far but these are the ones whose credit wasn't that bad. Just curious if anyone has gotten any deals through FHA with really shaky credit. How far will FHA stretch? |
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jtm7332
616 Posts |
Posted - 01/30/2008 : 12:20:22 PM
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| 508 |
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RDwyer
3308 Posts |
Posted - 01/30/2008 : 12:26:47 PM
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| More importantly, what's the worst that's gotten through RECENTLY... Even FHA underwriters have tightened the belt a little. FHA is NOT subprime! |
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jtm7332
616 Posts |
Posted - 01/30/2008 : 12:29:56 PM
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| My 508 funded in December. |
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American Credit
834 Posts |
Posted - 01/30/2008 : 1:01:54 PM
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| FHA is tightening up........That's why you send them to me! |
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jnegovetich
5 Posts |
Posted - 01/30/2008 : 1:09:43 PM
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| Some lenders will go as low as 500 but they have a really big hit for fico under 525. The majority of lenders will not take a manual underwrite or cash out below 580 or an automated Approve or Accept below a 550 regardless of findings. |
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cinthia
20 Posts |
Posted - 01/30/2008 : 1:13:57 PM
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Besides the credit profile and max DTI, does anybody know if FHA, VA, etc. care about declining markets? I mean, to the point where if a property is in a declining market they will reduce the final LTV? Thanks..
quote:
Originally posted by jtm7332
My 508 funded in December.
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jnegovetich
5 Posts |
Posted - 01/30/2008 : 1:59:44 PM
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see mortgagee letter 2007-11 on hud.gov
Fha doesn't say what to do if the property is in a declining market because there are way too many factors that go in to it. The appraiser needs to address what ever the declining market condition is and then the lenders DE underwriter needs to make a determination based on their own in house policies. |
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terrapin52
63 Posts |
Posted - 01/30/2008 : 2:06:14 PM
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| We were doing sub-500 manual FHA's up until 1/28/08 when our investor placed a cutoff of 500 minimum mid score for both borrowers. We can still do most loans down to 500. |
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Underpromise
18 Posts |
Posted - 01/30/2008 : 2:08:21 PM
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| 497 tons of LOX's with supporting docs |
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RodneyLO
952 Posts |
Posted - 01/30/2008 : 2:10:41 PM
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quote:
Originally posted by terrapin52
We were doing sub-500 manual FHA's up until 1/28/08 when our investor placed a cutoff of 500 minimum mid score for both borrowers. We can still do most loans down to 500.
Lee, who do you work for?
Hey, nice breezes yesterday, huh? |
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lukeallison
1617 Posts |
Posted - 01/30/2008 : 2:17:14 PM
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| 505. Mostly medical collections. Did 10% DPA and seller paid closing costs. Came to the closing and just signed papers. Nothing out of pocket. |
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cinthia
20 Posts |
Posted - 01/30/2008 : 2:19:24 PM
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Thanks!quote:
Originally posted by jnegovetich
see mortgagee letter 2007-11 on hud.gov
Fha doesn't say what to do if the property is in a declining market because there are way too many factors that go in to it. The appraiser needs to address what ever the declining market condition is and then the lenders DE underwriter needs to make a determination based on their own in house policies.
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Underpromise
18 Posts |
Posted - 01/30/2008 : 2:23:01 PM
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| I guess I should have added that is was a purchase in late Oct. Military guy. Manual underwrite with a TON of supporting docs for medical history and bills. 90% of his credit was medical due to the VA not paying his bills on time. |
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Perfect Fha
516 Posts |
Posted - 01/30/2008 : 9:49:56 PM
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498 and closed it. Cash out debt consolidation 3x30.
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hherrm
1418 Posts |
Posted - 01/30/2008 : 9:57:29 PM
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| I did a no score this month, had old medical collections only, no bank account. |
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cpruitt
1775 Posts |
Posted - 01/30/2008 : 9:59:49 PM
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The key to getting FHA refers approved is common sense, good cover letters and good documented explanation letters.
You can have someone with a 620 but a mortgage late in the last couple of months with no reasonable excuse and not be able to do it because they have no compensating factors.
But you can have someone with a 60 day late in the last year with a good excuse, a lasting solution to their credit problem and a steady job and close it with a 500 credit score and leave collections unpaid.
It isn't so much how bad the credit is, but why it is bad, whether it has repetitive patterns, and whether they have solved the problem and the loan is a genuinely good thing for the borrower.
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