Michael Dewvall at First American Mortgage Trust claims that they are still offering some alternatives to the Automated Underwriting most lenders have been forced into. Michael says that true manual underwriting Makes the Difference!! For 580-619 credit score borrowers he looks for simple basic requirements and strong compensating factors to make your LOAN APPROVED!
Basic Requirements for consideration of a 580-619 credit score borrower:
a. Borrowers must have 3.5% downpayment from their own funds
b. Borrowers must have 4 months PITI reserves
c. Payment shock can be no more than 200%
d. Debt Ratios must be under 31/43
e. 12 months verified rental history via canceled checks or institutional VOR
f. All collections in the last 24 months must be paid off including medical (unless under $1,000)
g. Loan must meet basic FHA guidelines outlined in FHA handbook (4155)
Strong Compensating Factors for 580-619 credit score borrowers should include at least one of the following:
a. Long, stable job history (5+ years on same job)
b. Additional downpayment on purchases (at least 5%) or LTV below program maximum
c. DTI at least 5% below maximum allowed of 31/43
d. PITI reserves of 6 months or more
e. Minimal payment shock (125% or less)
f. Refinance that saves the borrower 15% or more per month
g. Current FHA mortgage paid as agreed (0x24)
Contact -
Michael Dewvall
Area Sales Manager (Western United States)
First American Mortgage Trust
(512) 343-0520 Office
(512) 949-5093 E-fax
Michael.Dewvall@NXTLoan.com
No comments:
Post a Comment