FHA Mortgage Loans With No Lender Overlays

FHA mortgage loans are a great mortgage loan program for first time home buyers and to home buyers who have less than perfect credit or for home buyers with very little down payment.

Home Purchase With FHA Mortgage Loans

FHA mortgage loans allow a home buyer to be able to purchase a home with as little as 3.5% down payment.  Home buyers with a prior bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale can have a second chance and be able to purchase a new home as long as they have re-established their credit.

The Federal Housing Administration also allows FHA mortgage loan borrowers to have their down payment gifted from relatives or family members.

The Federal Housing Administration Also Allows FHA Mortgage Loan Borrowers To Add Non-Occupant Co-Borrower

FHA mortgage loans have much lenient lending guidelines than Fannie Mae or Freddie Mac conventional mortgage loan programs. Minimum credit scores to qualify for a FHA Loan is 580 FICO with a 3.5% down payment.  For conventional loans, minimum credit scores required to qualify for a conventional loan is 620 FICO.  Down payment requirements for a conventional home buyer is 3% down payment for first time home buyers and 5% for seasoned home buyers.

FHA Mortgage Lenders: Mortgage Lender Overlays

Not all FHA mortgage lenders have the same FHA mortgage lending criterias.  Many FHA mortgage lenders have mortgage lender overlays which are above and beyond the bare minimum FHA mortgage lending guidelines set by the Federal Housing Administration.  For example, the minimum credit score to qualify for a FHA mortgage loan with a minimum of a 3.5% down payment per FHA mortgage lending guidelines is a 580 FICO score.  However, a FHA mortgage lender may have a mortgage lender overlay on credit scores that they will not accept any FHA mortgage borrower with at least a 640 FICO score.  Other examples of mortgage lender overlays are minimum credit tradeline requirements.  Some FHA mortgage lenders require a minimum of 3 credit tradelines that has been seasoned for at least 24 months while others require 12 months.  Some FHA mortgage lenders require rental verification even though DU FINDINGS does not require rental verification.  You can get approved for FHA mortgage loans with unpaid old collections.  A certain FHA mortgage lender might require that all collections be paid off prior to closing.  The maximum back end debt to income ratio to qualify for FHA mortgage loans is 56.9%.  Many FHA mortgage lenders will have their mortgage lender overlays capping back end debt to income ratios at 50% or even lower.

FHA Mortgage Loans: No Mortgage Lender Overlays For Borrowers

If you are a home buyer and are in need of a FHA mortgage lender with has no mortgage lender overlays, you are in luck.  I represent dozens of wholesale FHA mortgage lenders with no lender overlays and can help mortgage loan borrowers .  As long as you, as the FHA mortgage loan borrower, can get an approve/eligible from Fannie Mae’s Automated Underwriting System DU FINDINGS.  Your approve/eligible is your approval.  Whatever the DU FINDINGS state is the conditions that I require to get your mortgage loan to the finish line and get you a clear to close.  Debt to income ratios at 56.9%, no rental verification (If AUS does not request), open collections and unsatisfied collections are acceptable ( As per AUS ), minimum credit scores of 620 FICO ( for 56.9% DTI) and minimum credit scores of 580 FICO ( For 43% DTI ).  If you need a FHA mortgage lender with no mortgage lender overlays, please contact me at 262-716-8151 or visit me at www.gustancho.com .  I also offer FHA Back to Work Extenuating Circumstances due to an economic event for mortgage borrowers which shortens the waiting period to qualify for a mortgage loan to a one year waiting period after a bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale.  Mortgage loan borrowers who are interested in HUD’s new FHA Back to Work Extenuating Circumstances due to an economic event needs to complete a one hour HUD approved housing counseling course 30 days prior to submitting a mortgage application.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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