The Best Montana Mortgage Lenders For Bad Credit

FHA Loan in Montana For Homebuyers With Bad Credit

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this article, we will cover and discuss qualifying for an FHA loan in Montana with a low down payment, little to no closing costs, bad credit, lower credit scores, and high debt to income ratio. The main goal for Gustan Cho Associates in the calendar year 2022 is to expand the States we are licensed. Currently, we are adding as many States as we can. In the near future, we should have coverage in 48 out of 50 states in the ability to land in United States Territories such as Puerto Rico.

What Credit Score Do You Need To Qualify For FHA Loan in Montana

One of the newest States we have added is the beautiful state of Montana. In this blog, we will cover and discuss in detail a few facts on qualifying for FHA loans with bad credit and low credit scores in Montana. We will also cover the lending programs we offer in the state of Montana, and how to apply for a mortgage loan within the state of Montana with Gustan Cho Associates. Gustan Cho Associates are mortgage brokers licensed in 48 states with no lender overlays on FHA loans in Montana. Over 75% of our borrowers are folks who have been denied by other lenders. We can help bad credit borrowers with credit scores down to 500 FICO.

FHA Loan in Montana With 500 FICO

There are numerous reasons Americans are flocking to the state of Montana. The state of Montana is sometimes referred to as the treasure state and was the 41st state headed to the Union. The entire state population is about 1.1 million people, roughly a quarter of the population of Los Angeles. The capital of Montana is Helena and the largest city in the state is called Billings. History tells us many Native American tribes lived in the state of Montana including the Cheyenne, Blackfeet, and Crow tribes. Many home buyers are relocating to Montana. Many have bad credit with low credit scores. The team at Gustan Cho Associates can help homebuyers with bad credit to qualify and get approved for an FHA loan in Montana with credit scores down to 500 FICO and bad credit.

Can I Buy a House With an FHA Loan In Montana With Collections?

Homebuyers can qualify for an FHA loan in Montana with collections and charged-off accounts. You do not have to pay outstanding collections and charged-off accounts to qualify for an FHA loan in Montana. Gustan Cho Associates has a large presence in the state of Montana. We are experts in helping borrowers get approved for FHA loans in Montana.

How Do You Buy a House in Montana If You Are Living in Another State?

The state sells itself. Beautiful scenery, strong economy, diverse friendly people, low taxes, affordable housing, strong demand for jobs in all areas, and a strong top-rated educational system at all levels. These are some of the many reasons why Americans are moving to Montana. Gustan Cho Associates gets many inquiries from people who want to move to Montana but don’t want to rent. They want to buy a home instead of rent. So, how can you buy a home in Montana before you sell yours in a different state? The team at Gustan Cho Associates are experts in coordinating and helping our clients on how to sell and buy a home at the same time. Each case is unique but you can buy a house in Montana if you are living in another state. Gustan Cho Associates offers employment letter mortgages on conventional and VA loans. FHA loans require you to start your new job and provide two weeks’ paycheck stubs. Conventional loans and VA loans allow an employment offer letter and you need to prove your paycheck stubs within 60 days after you move. Gustan Cho Associates also has a bridge loan program. We also have non-QM and alternative loan programs for homebuyers who are leaving a state to move to Montana.

Buying a Primary Home in Montana For Retirement

The area of Montana was mostly unexplored until the Lewis and Clark expedition. Lewis and Clark passed through the region in 1805 during their western expedition. About 50 years later, settlers found gold and people started flocking to Montana in search of their own fortune. Due to the expanding population and value in mining, the land was made into a United States territory in 1986 and then became an official State in 1889. Unfortunately, the explorers were settling on Native American land. The Native Americans did not take kindly to this. The Native Americans actually joined up to fight the battle of the Little Bighorn in 1876. The Sioux, Cheyenne, and Arapaho tribes banded together and won this battle against the United States Army. Unfortunately, the victory of this battle was short-lived. The Native Americans were ultimately defeated. The beauty and landscape of Montana are making the state a top retirement destination depot for those moving to Montana from a different state. Many homebuyers in Montana will buy the home as a second home and eventually turn it primary after they move to Montana. The team at Gustan Cho Associates are experts in helping homebuyers move to Montana. We have many different types of loan programs for buying second homes and properties out of state including no-doc loans, stated-income, and asset depletion.

Get Approved For an FHA Loan in Montana With Poor Credit

Gustan Cho Associates has no lender overlays on FHA loans. FHA only requires a 3.5% down payment for homebuyers in Montana with at least 580 FICO to qualify for an FHA loan in Montana.  Many new people are fleeing mismanaged high-taxed states to Montana. Many people wonder how the state came up with Montana to name the state. The state earned its name from the Spanish word Montana which translates to “mountainous”. Montana is filled with beautiful mountains and over 300 peaks with an elevation above 9500 feet. These mountains created large amounts of gold and silver, and this is the reason the state was given the nickname, treasure state. Like other states in the west, Montana has a beautiful mountainous section as well as a large section of plains.

Homebuyers Moving To Montana Due To Affordable Housing, Low Taxes, and Better Quality of Life

Montana’s population started surging in late 2019 into now. Montana’s breathtaking landscape is a haven for Americans who love the outdoors and enjoy the beautiful majestic mountains and terrain. Many families started their journey to Montana in the thousands. At the same time, tourism increased to record numbers. Many people who visited Montana as a tourist got sold on the first visit to set a goal to call Montana home. Most people moving to Montana say the top reasons for their decision is due to the majestic mountains, beautiful wildlife, clean air, less congestion, and better quality of life. The mass migration of new Americans to Montana put pressure on home prices. More home buyers than the inventory are the main reason for driving home prices in Montana to record increases. Montana is home to many grizzly and black bears, big horns, wolves, and bison. Montana is also home to many beautiful birds including bald eagles, redwing blackbirds, and mountain bluebirds. While our early settlers found copper, gold, and silver, the state’s most valuable natural resource is petroleum.

Is Montana a Good Place to Buy a Home?

Currently, Montana is the world’s leading producer of talc, a mineral used in many cosmetic products. At one point, Montana was the home to more millionaires per capita than anywhere else in the country. This was mainly due to the riches of gold and silver. Mining the west created local booming economies which no longer exist. This creates some great historic site seeing. We encourage all of our readers to plan a trip to Montana to see these areas.

The Best Mortgage Program For Montana Homebuyers

Gustan Cho Associates are experts with no overlay lending platforms. Our highly skilled team is here to assist you without additional lender overlays. FHA mortgage lending has become extremely popular. Many of our borrowers may not qualify for conventional lending but are able
to purchase a home with an FHA mortgage loan. The Federal Housing Administration offers highly competitive mortgage programs geared to help lower credit scores individuals. FHA guidelines are put in place to protect a borrower from overextending their monthly budget.

Why Do Borrowers Use FHA Loan in Montana versus other Mortgages

What are some key features of FHA mortgage lending?

  • Low down payment options
  • Lower credit score thresholds compared to conventional lending
  • Higher debt to income ratio threshold More lenient underwriting guidelines surrounding credit events
  • Bankruptcy, foreclosure, deed in lieu of foreclosure, short sale
  • Late payments after bankruptcy and/or foreclosure
  • Late payments in the past 12 months

These features could be the difference between owning a home and continuing to rent.

Why Are Homes in Montana So Expensive?

If you have been paying attention to the news, you know that rents across the nation are at all-time highs. And we expect those high prices to continue to increase. As inflation plagues the country, landlords are forced to pass along these higher costs to their tenants. We know the Federal Reserve is raising interest rates across the board in order to put slow down inflation, however, we have not seen any relief as of today. As interest rates continue to rise, your rental payments will also increase. Locking yourself into a 30-year fixed mortgage program will help you battle inflation as you will be prepared to make the same monthly payment each month.

Is Montana a Good Place to Buy a Home?

When renting, your landlord has the ability to raise your rent every time you resign your lease. With a fixed-rate mortgage, the only time your payment will increase is if your county raises your property taxes or your insurance premium increases. Since your payment will be more constant, this will help you battle inflation as your home appreciates in value.

Buying Versus Renting a Home in Montana

Homeownership is a great tool to increase your overall wealth. You may hold on to your home long enough to pass it down to future generations or sell it when it is time to settle down and retire. Either you, you, or your family will benefit from the equity you build in your home.

Common Myths on Going With an FHA Loan in Montana

Common Myths on Going With an FHA Loan in Montana

Common myths about FHA financing. Some sellers and realtors think FHA financing is a bad mortgage program. That is simply not true. Most consumers are concerned with the monthly mortgage insurance costs of FHA mortgage loans. What many individuals do not understand is unless you put down 20% with a conventional mortgage program, or are a veteran using a VA loan, you are going to pay mortgage insurance.

Mortgage Rates on FHA Loan in Montana

While it is true you will have a monthly mortgage insurance premium, for the most part, FHA mortgage loans offer a lower interest rate compared to conventional financing. In some situations, the FHA mortgage program will have a lower overall monthly payment compared to conventional financing. The cost of mortgage insurance with a conventional loan can be very high. The cost of mortgage insurance with an FHA loan is .85% (or .8% with a 5% or greater down payment). Please reference the U.S. Department of Housing and Urban Development link below to calculate your FHA monthly mortgage insurance or call our team today!

Applying For an FHA Loan in Montana

Applying for an FHA loan with Gustan Cho Associates is very simple. We have worked hard to make the process as painless as possible. First, you will reach out at 800-900-8569, or via email at Mike will go over your basic qualifications and answer any questions you may have pertaining to the loan process. After your initial phone call, you will be sent an email with an application link.

Initial Mortgage Documents Required For an FHA Loan Mortgage Approval in Montana

This application link will walk you through the process step-by-step and even give you a secure portal to upload your income and asset documentation. You should be prepared to upload the following documents:

• Driver’s License
• Last 30 Days of Pay Stubs
• Last 60 Days Bank Statements (to show funds for the down payment)
• Last Two Years’ Tax Returns
• Last Two Years W2 or 1099s

How Do I Apply For an FHA Loan With Bad Credit in Montana

Based on your sources of income and where your assets are coming from, these documents may vary slightly. Once our team has your full mortgage application as well as supporting documentation, we will then pull a tri-merged credit report. Based on the information provided
on your credit report, our team will go over your qualifications in detail.

How Can I Get The Lowest Mortgage Rates With Low Credit Scores in Montana

Your credit report is the most important piece of the mortgage process so we will go over that information in detail. Assuming everything checks out with your credit report, income, and asset documentation, we will then issue a preapproval letter. If you are applying for an FHA refinance, at this time our team will go over your refinance options and make sure you understand the money-saving benefits a refinance can provide.

How Can I Qualify and Get Pre-Approved  For an FHA Loan in Montana With Bad Credit

What if there are issues with your credit report or supporting documentation? The highly skilled team at Gustan Cho Associates prioritizes educating our clients on every step of the process. If you do not qualify today, our team will make sure you understand why. We will go one step further and educate you on what steps to take to qualify for an FHA loan in Montana as soon as possible.

 Boosting Your Credit to Qualify for an FHA Loan in Montana

We work with many families for well over a year before they qualify for the home they are looking for. Buying a home is a huge step and an important decision. We don’t want you to settle for just any home, we want to make sure you qualify for the home that is right for you and
your family.

Shopping For a Home After Pre-Approved for an FHA Loan in Montana

After you receive your pre-approval letter, you and your realtor will start the house-hunting process. Due to the housing market in Montana, this process is slightly more difficult now than it has been in the past. Montana has turned into a highly competitive housing market. We want to prepare our readers for the mortgage process.

How To Get The Winning Bid on Home Purchase Offer in Montana

Because of the housing market, you may see yourself in a bidding war. Bidding wars have become part of the process since the beginning of the COVID-19 coronavirus pandemic. Thousands of Americans have relocated themselves and their families since the start of the pandemic. Home values are extremely high and are projected to continue to increase.

When Does The Mortgage Approval Process Start

Once you go under contract, the mortgage process begins. We will now order your home appraisal and your file will be sent from our processing team to our underwriting team. During this process, additional documents may be requested from you. After we receive your title report, appraisal, and additional documentation, you will be issued a clear to close.

When Is a Clear to Close on an FHA Loan in Montana

Congratulations, you are now ready to close on your new home. Once you sign the official documents with the title company, the keys to your new home are yours. This is a very exciting process. Many of our clients are first-time home buyers so we are here to help you through every step of the process.

The Best FHA Mortgage Lenders in Montana For Low Credit Borrowers

Gustan Cho Associates are excited to now offer our services in the state of Montana. If you or anyone you know is searching for an FHA loan in Montana or other mortgage financings in the state of Montana, please pass this information along. If you have any questions on FHA loans in Montana or other mortgage-related questions, please contact Mike Gracz at (800) 900-8569. Our team is available seven days a week via phone call, email, or text message. Even if a lender has turned you down in the past, there is a good chance you are running into a lender overlay. Our team would love to put a second set of eyes on your file. Please feel free to reach out anytime for more information! We will continue to update our readers as we get licensed in more states.

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