FHA Loans Louisiana With Bad Credit And No Lender Overlays


This BLOG On FHA Loans Louisiana With Bad Credit And No Lender Overlays Was UPDATED On September 2nd, 2018 And Written By Michael Gracz

Which means FHA borrows Louisiana with bad credit and no lender overlays

Louisiana is a beautiful coastal state with many attractions and places to visit.

  • There are hundreds of thousands of visitors and tourist visiting the state of Louisiana every year
  • A large percentage of them fall in love with the state
  • The climate, entertainment, and still low housing prices makes the state of Louisiana one of the fastest growing states in the continental United States
  • The state of Florida, one of the hardest hit states of the Great Real Estate Collapse, has seen home values sky rocket from a median of $167,000 back in 2010 to $279,890 in late 2017
  • Texas is no different
  • Home prices in Texas is averaging $289,050 as of December 2017
  • Arizona, Georgia, Alabama, Kansas, Oklahoma, New Mexico, Nevada, Pennsylvania, New Jersey, and the Carolinas are seeing double digit home price increases with no signs of slowdown despite the all time mortgage rates since 2008
  • Is Louisiana next?
  • Louisiana has not seen explosive growth in home prices until the second half of 2017

Many real estate industry experts predict that home values throughout the state of Louisiana will not just remain strong but demand will exceed supply forcing home prices to rise.

About The State Of Louisiana

Louisiana was awarded its name from Louis XIV, the king of France from 1643 to 1715:

  • The state is embedded with culture and diversity
  • Louisiana is ranked 31st in population
  • 25th in overall size in the United States
  • Most of the natural beauty in Louisiana is formed by the sedimentation washing down the Mississippi River
  • There are hundreds of naturally formed deltas and many swamps

These attract some amazing wildlife making Louisiana not just a great place for nature lovers to visit, but also to live!

Population Of The Great State Of Louisiana

In 2018, it is estimated Louisiana has over 4.6 million residents.

  • New Orleans is the largest city and Baton Rouge is the capital
  • Since becoming a state in 1812, Louisiana has seen steady growth, year after year
  • From 2016 to 2017 there was a modest growth of .75%, ranking 27th in the country

One more unique fact about Louisiana is, it is the only state who does not use counties, they have political subdivisions called “parishes”

FHA Loans Louisiana Loan Limits

What are the FHA loan limits in Louisiana

Louisiana is a great place to buy a home.

  • Many Americans use an FHA loan to buy their primary homes
  • The FHA loan limit in 2018 for a single-family (one-unit) home is $294,515 throughout the entire state
  • That amount increases to $377,075 for a two-unit home, $455,800 for a three-unit home, and $566,425 for a four-unit home!

Many Louisianans have taken advantage of buying a multi-unit property and renting out the other units to add a supplemental income.

Why Is FHA Loans Louisiana Is Loan Program Of Choice

Why use an FHA loan?

FHA Home Loans is the most popular home loan program in the United States.

  • HUD, the parent of FHA, promotes homeownership so first time home buyers can purchase their first homes with 3.5% down payment
  • Home Buyers with less than perfect credit, lower credit scores, outstanding collections/charged-off accounts, and prior bankruptcies and/or housing event can qualify for FHA Loans at very low rates
  • Lenders love to originate and fund FHA Loans because of government guarantee. FHA is not a lender but rather an insurer
  • FHA will insure and guarantee lenders a loss in the event borrowers default on their FHA Loans

This is the reason why mortgage lenders can offer home buyers with lower credit scores and less than perfect credit such a low down payment and low-interest home loans.

Qualification Requirements Of FHA Loans Louisiana

Most lenders have lender overlays on FHA Loans.

  • What lender overlays are mortgage guidelines that are above and beyond of minimum HUD Guidelines
  • For example, HUD requires a minimum credit score of 580
  • Many lenders may require a 620 to 640 credit score
  • This higher credit score requirement is called a lender overlay

Michael Gracz of Gustan Cho Associates Mortgage Group has a national reputation of representing a national mortgage banker with zero FHA Lender Overlays.

FHA Home Loan Requirements And Guidelines

What are the requirements and guidelines for an FHA home loan?

Here are the basic HUD Guidelines to qualify for FHA Loans Louisiana;

  • 3.5% down payment with credit scores down to 580
  • Outstanding Collections and Charged Off Accounts do not have to be paid
  • 2 year waiting period after Chapter 7 bankruptcy
  • Borrowers can qualify for FHA Loans one year into a Chapter 13 Bankruptcy repayment plan
  • There is no waiting period after Chapter 13 Bankruptcy to qualify for FHA Home Loans

Three year waiting period after housing event:

  • Foreclosure
  • Deed In Lieu Of Foreclosure
  • Short Sale

Low FIXED mortgage insurance:

  • Lower interest rates compared to conventional financing
  • Scores down to 500 with 10% down
  • Higher debt-to-income ratio thresholds

Become A Home Owner And Qualify For FHA Loan Today With Lender With No Overlays

Home Buyers who plan on becoming homeowners and need to qualify with a direct lender with no lender overlays, please reach out to Mike Gracz of Gustan Cho Associates Mortgage Group for more details. Mike Gracz is an expert in FHA mortgage lending!  Michael Gracz can be reached at 630-659-7644 or text for faster response. Or email Michael at mgracz@gustancho.com. GCA Mortgage Group does not have any LENDER OVERLAYS. Please see Lender Overlay Blog written by Gustan Cho. Lender overlays stop many homebuyers from qualifying. So even if you have been turned down in the past, give us a call! Michael Gracz is also an expert on non-QM loans and bank statement loans for self-employed borrowers. There is no waiting periods after housing events and/or bankruptcy with non-QM loans.

We know Katrina hit the state hardback in 2005, causing over $81 billion dollars in damages. The state as a whole has come a long way and is now an amazing place to live. Home prices and property taxes attract many homebuyers to the Louisiana housing market. Reach out to the Gustan Cho Associates Mortgage Group today!

Leave A Reply

Your email address will not be published.

Call Now ButtonCALL NOW