FHA Program is Great for Buyers with Less-Than-Perfect Credit

Today, the mortgage industry is in disarray with the Sub-Prime Meltdown but there are still many great loan programs for first time home buyers with less-than-perfect credit. FHA is here to the rescue! FHA offers great 30 year fixed and buydown programs which makes the thought of home ownership more than a pipedream. First of all, there are no credit score requirements and each borrower is evaluated on a case-by-case basis and you have every opportunity to present the merits of your qualifications to real human being not a machine. For example, if you had bad credit in college and you have worked hard to improve your credit and you have made on time payments on your obligations for the last year, you have a good shot of being approved. Also, if you have no credit history at all but you have non-traditional credit such as rent, phone, electric, phone, cell, etc and you have made on-time payments for a year on 3-4 accounts, you will probably get approved. Obviously, you have to meet income and other requirements, but lately I have spent countless hours assisting buyers in cleaning up their credit so that they can buy a home within the next 6 months-1 year. I have a credit consultant who works with my credit-challenged borrowers and he has been able to help them substantially improve their credit so they can get approved for a good loan program such as FHA. Bottomline, if you want a great 30 year fixed program with a low rate, then you have to do some work. Just help me help you and home ownership will become a reality.

Finally, there is a Bill called the Expanding American Homeownership Act of 2007 waiting to be passed which would revamp the current FHA platform which would allow FHA to raise current mortgage limits and offer zero down payment options. It is a great starting point to bring good news to first time home buyers who need a safe, fair and affordable FHA alternative to the exotic subprime market.