Help for More Home Buyers

 

 

 

Help for more home buyers to achieve their home ownership dreams have been initiated by First Home Mortgage by loosening the credit guidelines. The decision was made after a review of borrowers that may have been held out from buying due to higher ratios or lower credit scores. Most of these buyers do not necessarily represent a substantial increased lending risk.  First Home Mortgage made these changes to help more buyers achieve the goal of home ownership.

• First Home Mortgage is lowering the minimum credit score to 581 for FHA and VA loans.  The loan will have to receive an automated underwriting approval and follow investor guidelines.  A credit score of 581-599 does require two compensating factors.

 

• USDA loans can now go to 581 with an automated approval from Rural Housing Authority.  A credit score between 581 – 599 does require two compensating factors.

 

•  First Home Mortgage have expanded ratio guidelines on FHA, VA and Conventional loans that received an automated approval.  If an automated underwriting approval is received, First Home Mortgage will follow their findings and not include any overlays on debt to income ratios – regardless of credit scores.

 

• Conventional conforming loans that follow Fannie Mae guides will be expedited after the appraisal approval process. On loans that receive at Collateral Underwriting rating of 2.5 or less there will be no further appraisal requirements on value.   This means no more desk reviews, field reviews or requests for additional comps to support the value.  Collateral Underwriting is Fannie Mae’s automatic system used to evaluate the appraisal. And, validate the value that was provided  – 60% of cases receive a ratio of 2.5% or less.  This change alone will streamline the approval process and remove underwriter review of value creating a faster peace of mind to you and your clients.

The above changes needless to say are HUGE and will help many home buyers that could not purchase previously.  As a forefront leader in the lending industry, First Home is extremely excited to offer these changes and help your clients purchase more homes. Give us a call today for a referral to a First Home Mortgage Consultant!