FHASecure Loans and Credit
FHA does not required borrowers to have a minimum credit score, rather they have focused on one’s overall credit history. Therefore, it may be possible to qualify even though you may have a low credit score, perhaps 500 (or less). Under the FHASecure Loan program homeowners must have made their payments on time for at least six months prior to their ARM loan’s change date to a higher rate. In addition, their ARM loan’s rate change date(s) must be between 2005 and 2009. To date no mention of a particular credit score has been mentioned. So if you have become delinquent on your mortgage after your interest rate adjusted then you can now qualify for this mortgage.
(Note – you do not have to be delinquent)
To qualify for FHA Secure, eligible homeowners must meet the following five criteria:
A history of on-time mortgage payments before the borrower’s interest rates increased;
Interest rates must have or will reset between June 2005 and December 2009;
Three percent cash or equity in the home (Colorado does have a program now available to assist if you do not have the equity);
A sustained history of employment; and
Sufficient income to make the mortgage payment (you can add a non-occupying co borrower to help qualify with income).
Until now the FHA has not permitted delinquent borrowers to qualify for their loan program.
To qualify for FHASecure Loans contact us at (303) 779-0591, by e-mail or start a secure loan application on our site. This is a new program and we are available to answer your questions.