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.

Nationwide is one of the few FHA lenders in the U.S. that continues to offer home loans and bad credit mortgage products 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 mortgage 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