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

How do the Events in Japan affect Mortgage Rates?

Another explosion at a nuclear power station in Japan triggered a 10.55% sell-off in Japanese stocks last night and initiated a massive global flight to safety away from equities into safe haven bonds and currencies. This helps to lower long term mortgage rates.

"The situation at Japan's Fukushima Dai-Ichi nuclear plant worsened overnight with at least one other explosion and fire at the facility," said economists at BMO. "There was some release of radiation and those living within 30km were advised to stay indoors, while those within a 20km range were being evacuated."

Prime Minister Naoto Kan said the risks of further radiation leaks are increasing. Japanese economic minister Kaoru Yosano told reporters the nation's economy is healthy and that stocks are falling because of uncertainty.

S&P 500 futures are a staggering 32.50 points lower at 1,258 and Dow futures have tumbled 232 points at 11,694 - the lowest since early January.

Light crude oil fell 3.24% to $97.93 per barrel, while gold prices surprisingly dropped 2.44% to $1,391.80

Meanwhile, risk averse assets are rallying. Among Treasuries, the two-year yield has firmed 7 basis points to 0.53% and the benchmark 10-year yield has fallen 12.5 basis points to 3.24%. The 2s/10s curve is 6bps flatter at 271bps wide.

"The safe-have Swiss franc and US$ are being bought across the board," BMO reports.

The drop in Japanese stocks marks the biggest single-day decline since October 2008 despite the Bank of Japan injecting 8 trillion yen into money markets. The volume of trading is considered all the more remarkable considering how short-staffed Japanese desks are.

European markets are currently down 2% to 4%, while shares in China finished 1.38% lower and those in Hong Kong fell 2.86%.

BOTTOM LINE: If you are waiting or were waiting to lock in your rate today will probably be the best day in the last month to do so. Call us today!

Crystal Clear Mortgage
888-634-6911