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Hello Rates have come down and they're way under 6%!

Get your loan applications in now, so we can lock at the best possible rate!!

I've connected with a lot of non prime clients recently about changes in the non prime lending marketplace, but if you haven't caught those changes, this blog is for you!

Due to the diminishing appetite on Wall Street for stated income, first time home buyer loans to 100%, lenders have reduced their loan to values to about 90%.  I do have one loan in the pipeline going to 95%, but you would need at least a 640 Fico score for 95%.  Otherwise high LTV financing for all but A paper is all but gone. 

To our self employed borrowers looking to borrow 100% of the purchase price of a home, please consider using our bank statement loan.  We qualify your income based on the sum of 12 months of business bank statement deposits, then divide that number by 12 months.  Each bank will have a percentage of that amount they allow you to use, some 50%, some more.  For instance, a borrower that takes in 300K through their account we would be able to use 150K for as their yearly income.  You would most likely need a 620 Fico for 100%, but the rumor is that this guideline will also change to 640 over the next month.

We need to point out that government loans, such as FHA have always been a great option for credit challenged borrowers where clients can document their income and any potential assets.  If you have a limited number of tradelines on your credit report but you have a cell phone, and have paid your electric and oil bill on time for 2 years we can even build alternative credit lines for you.  FHA 30 year fixed rates are competative with A paper rates and their PMI is less than that of a typical convential loan.  Please see our websites section on Government Loans for more information or use one of the "talk now" buttons on the website to call us directly.

I hope you find this information helpful.  Comment or call with questions!

Regards,

Tom Higgins