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Feb
07

FHA Mortgage for Second Chance Loans

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Let’s be honest— There are many borrowers with less than perfect credit who need a second chance loan with FHA that enables them to buy or refinance at a low affordable interest rate. Many applicants have been rejected recently from FHA mortgage programs because their credit score is too low for the new lending guidelines that most lenders have implemented in 2011. We are one of the unique lenders that offer FHA loans to borrowers with credit scores between 500-640 FICO.  In a recent article, Bloomberg indicated that there are 6.3 million borrowers in the 620-640 FICO range alone.  Imagine how many applicants are looking for mortgage refinancing or new home loans in with credit scores below 620.

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B.D. Nationwide is one of the few FHA lenders in the U.S. that continues to offer home loans and a “bad credit mortgage” to the borrowers who need it most.  Take advantage of this lending opportunity and save money with lower payments and enjoy the security of a fixed rate FHA mortgage loan.  With the economy ailing, Americans need second chance loans now more than ever before.

FHA Mortgage Loans – 620-640 FICO

  • DU Approve/Eligible for premiere FHA rates
  • DU will be reviewed by the underwriter to determine acceptable credit and income risk.
  • Accounts showing “in dispute” requires downgrade to a manual underwrite – even if closed
  • Home loans with high Debt to Income Ratio subject to UW discretion

FHA Mortgage – 500-620 FICO

  • DU Approve/Eligible
  • Case Numbers after 10/4
  • 580 FICO = 96.5% LTV
  • 500-579 FICO = 90% LTV Max
  • Alt Credit for No FICO = 96.5% LTV
  • Max DTI of 31/43%
  • Can stretch ratios to 40/46 with strong compensating factors from 4155.1
  • No late mortgage payments in last 12 months (Rev + Installment)
  • No Collections with Date Opened in last 12 months
  • Verification of Rent or 12 months cancelled rent checks
  • Non-occupant co-signers must be related as parents, children, or siblings.
  • Access to new home buyer education course online
  • Accounts showing “dispute” on credit invalidate DU Findings and force manual underwrite

HUD continues to expand home loan and refinancing programs this year and the Federal Housing Administration still offers the best second chance loans with the FHA mortgage.

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8 Comments

1

My credit scrores are : 697,653,657 and I have a Forclosure that was 28 months ago. Am I able to apply for a home mortgage?

Theresa Molina

2

I filed bankrupt in 2004 had a home loan that went under the bankruptcy. Credit not that strong. Credit score btw 590-640 now.
Can I qualify for a Second chance home loan?

3

I have poor credit. I have been divorced >20 years. I am working getting my credit in good shape. I have been living my Mom and sister for over 10 years. Just recently have a good job. I filed bankrupt in 1999. I had a foreclosuer on a house. I would to start over and have my own house. Do you think I qualify for a second chance home loan. I found this 3 BR and 2 bath perfect. It is in forecloser $134,900 and 20% down payment. I pray I could get this house. Just looking for help.

Thank You
Carol J. in Apalachicola Florida

4

i have lost my house in 2007 all because i fell into depression of losing my mother in 2006. She was going to help me remodel, it was like our project together. but now i m strong again, but unfortunatley my credit probably had went sour because i had two cars priors who i gave to family members who i though i can trust them into making sure that they can take over of making the car notes. What can I do to qualify for a bad credit mortgage today?
- M. Bendicio

5

we own a home our credit is 600,and 620,we already own a home,but were trying to purchase a second home,our credit shows a few late payments on a credit card,,cam we get a home loan?

6

My wife and I went through Bankruptcy. It was just discharged and we are looking at buying a house in the next year. I lost my job and tried to file a loan modification with GMAC and i got the run around for 6 months. My wife is a 4 time cncer serviver and had a lot of medical bills. We are just wondering if there is any hope i have a great job and making great money just need a second chance.
Thank you

7

We have a 200K house in the Oak Forest area of Houston, Texas which is booming! It needs repair. It is, however, very attractive as is. Our credit slipped after I had two, not one, two major surgeries in 2012. Do you recommend a home equity mortgage or refinancing my current mortgage and getting money back for the house improvements? Please contact me. We need cash out in order to remodel.
S. Manning

8

I have a credit score of 589 &I’m working with a law firm that’s helping me rebuild my credit. I’m wondering if I can get a home loan now .I’m a first time home buyer

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