I hear this all the time. Sure, some of the restrictions could be loosened to allow more buyers to be able to qualify for mortgages, but not with regard to credit scores. I have been doing mortgages for clients that have credit scores down to 580 for a long time.
Many local banks and credit unions have been referring clients with lower credit scores for years. Here is the thing, FHA does what is a called a neighborhood watch rating for everyone that is involved with FHA mortgages. You would think, that with my doing FHA mortgages down to 580 credit scores, that my rating would be a problem.
Just the opposite, my company rating is in the top 5% in this country. So how does that make any sense. Actually that is the point it has to do with a common sense approach to lending.
I was recently asked by one of my lenders how my neighborhood watch numbers are so good? I said simple, if I would be willing to lend the client my own money, then that is a good loan for you to make.
Does it mean that someone who was late on a credit card payment shouldn’t be able to get a mortgage? Hell no! Does it mean someone that was once late on a mortgage payment shouldn’t be able to get a mortgage? Hell no! Does it mean that someone that was ever late on a student loan shouldn’t be able to get a mortgage? Hell no!
If you are in CT, MA, RI, VT, NH, ME, NY or FL and you need a mortgage, I can help!
By: Ryan Schuette