FHA Purchase and Refinance to 600 credit score!

FYI...We have one of our primary investors that is relaxing their credit score requirements on FHA refinances and purchase loans. Starting April 4th Crystal Clear Mortgage can now accommodate borrowers with a 600 credit score and above!

Their are significant caveats to this program, here are a few:

• The property must be single family residence, condominium, or PUD
• Borrower's may not have had any short sales, "settled for less than amount owed", public records, judgments, bankruptcies, foreclosures, or tax liens in the most recent three years
• Borrowers may not have had any collections in the last 12 months other than medical
• no 30 day late pays on mortgage, rent, or installment debt in the previous 12 months
• No more than one 30 day late pay in the last 12 months on revolving debt
• overtime, bonus, second job, income from part time employment, commission income, and self employment income cannot be used to qualify unless the borrower has a two year history of receiving this income. Must be consecutive years but does not need to be same employer.
• Gift funds for down payment are eligible from a family member

This is a stark reduction is the severity of underwriting guidelines. Perhaps this is a trend of what is to come. Of course, most people with a 600 score will not be able to clear these hurdles. This loan is not designed for the person that doesn't pay their bills. This loan is designed for someone that had a medical emergency or a divorce situation and could not maintain a decent credit score under the weight of all of the bills.

If you have clients or you yourself has been declined recently please call us!

Adam Simmons

Crystal Clear Mortgage

888-634-6911