FHA LOANS DOWN TO 580 FICO

ELIGIBILITY DOCUMENTATION:

• 580 minimum FICO. This would be the lowest middle score of all borrowers.
• No non-occupant co-signers.
• Gift Funds cannot be used for the minimum 3.5% down payment but would be allowed to make an additional down payment or for help with closing costs.
• 3.5% down payment must come from borrowers own funds.
• Must have a verified 12 month housing history as evidenced by a copy of a 12 month's canceled checks or management verification of lease/rents.
• No private verification of rents allowed. This means if you currently rent a home from a individual you must use cancelled checks, bank statements or properly dated money orders for verification.

DEBT TO INCOME RATIOS:

• 31/43% STANDARD. This means if you make $3000 per month before taxes, your house payment including taxes and all insurance cannot exceed $930. per month (31% of $3000). Your total debt (mortgage payment, car payment, credit cards) cannot exceed $1290 (43% of $3000).
• These debt to income ratios to have some leeway with certain compensating factors, but the above guideline is the best one to follow.

DOCUMENTATION REQUIRED:

• All borrowers must have a valid social security number.
• All borrowers must have at least one valid credit score (580 minimum).
• No non-traditional credit.
• Must have open and active trade lines. (At least two trade lines with 12 months activity on each trade line).