Extended Guidelines
Purchase a property and finance renovation cost in one loan. This is ideal for fixer properties that need remodeling. The future after-repaired-value is considered.The transaction closes like a regular sale. The renovation is a separate project between the borrower, contractor, and bank. This program allows a 580 minimum credit score. Buyer must be able to afford the mortgage and be responsible with rent. Credit issues should source from past issues and recent improvement of credit repayment pattern.
| Credit Score: | 620 minimum |
| Property type: | 1-4 units, Condo, PUD |
| Occupancy: | Primary residence |
| Down Payment: | 3.5% minimum |
| Loan to Value: | 96.5% CLTV: 96.5% (base d on future-value) |
| Gift Funds: | Allowed. No minimum buyer contribution |
| Closing Cost: | Seller and/or lender can pay up to 6% |
| Debt ratio: | 43% with compensating factors 45/50% |
Additional Notes:
- Must complete Homebuyer Education
- Must provide evidence of strengths to offset their deficiencies
- No negative credit reporting within last 12 months
- Should pay collections within 24 mos. or over $5,000
- VOR from property management or 12 mos. cancelled check
- Condos must be FHA approved
- Bankruptcy 2 yrs, Foreclosure 3 yrs, Short Sale
- Cannot convert SFR to 2 Units
- No structural changes permitted. This is for remodeling.
- Construction must be performed by licensed contractor
This page contains program highlights only. See sidebar links for further information and details.
All program are subject to change at anytime without any further notice