Steve Nassar of Alpine Mortgage (503) 805-5582 snassar@alpinemc.com has shared the following great info on all sorts of lending topics. Read on- 
FHA-
- Although FHA has a minimum FICO score of 580, the industry has dictated a minimum 620 score with most investors requiring a minimum of 640.
- Minimum Down Payment is 3.50% and must come from the buyer or be an acceptable gift to the buyer.
- Seller can contribute up to 6% of the sales price.
- No Non-Allowables required to be paid by the seller.
- Buyer can currently be in a Chapter 13 Bankruptcy and still purchase. They can also purchase as soon as three years after a foreclosure and two years after a Chapter 7.
- It is an assumable loan (important when rates go to 8% and they are at 5%)
- Buyer can have collection accounts and not have to pay them off
- Don’t forget that beginning this Friday June 18th we will also have the FHA 203k loan program available in-house with our own underwriting, docs and funding department in complete control.
VA-
- There is NO down payment required
- No Monthly Mortgage Insurance
- Although VA has not set a minimum FICO score the industry has dictated a minimum 620 score with most investors requiring a minimum of 640.
- Seller can pay 4% of reasonable buyer’s closing cost PLUS the non-allowables.
- Buyer CAN currently be in Chapter 13 BANKRUPTCY. Buyers can purchase 2 years after a Foreclosure and/or Bankruptcy 7.
- A Termite Report is required
Fannie/Freddie- (Conventional)
- Traditional conforming with loan amounts up to $417,000
- Minimum of 5% down payment.
- Risk based pricing depending on credit score and down payment (so with lower credit scores, we compare FHA and Fannie/Freddie to see which is the better option for the borrower).
- PMI companies require a minimum of 680 FICO score and income/expense ratios no more than 45%
- Seller can pay up to 3% of buyer’s closing cost and prepaids with down payment of 5-9.99%. Seller can pay up to 6% of buyer’s closing cost and prepaids with down payment of 10% or more.
Length of time before a borrower can qualify for conventional financing after the following events occur.
| Deed-in-Lieu of ForeclosurePre-foreclosure SaleShort Sale | 2 years- 80% maximum LTV ratios4 years- 90% maximum LTV ratios (although obtaining PMI or a 2nd lien will be difficult if not impossible)7 years- LTV ratios per the Eligibility Matrix |
| Foreclosure | 7 years- LTV ratios per the Eligibility Matrix |
| Bankruptcy | 2 – 4 years, depending on reason and re-established credit |
In all cases, borrowers must re-establish their credit, which means they must meet minimum credit scores and eligibility requirements.
USDA-
NOTE THAT MONIES FOR THIS PROGRAM ARE NOT READILY AVAILABLE- STAY TUNE FOR OUR UPDATES.
- No Down Payment to Qualified Borrowers
- Minimum 620 credit score but again most investors are requiring a minimum of 640.
- No Monthly Mortgage Insurance
- No Cash Reserve Requirements
- Must Purchase in an Eligible Rural Area.
- Cannot own another property (although they do not need to be a First Time Home Buyer)
- Income limits apply – call us for details
· Seller can pay up to 6% toward closing costs and prepaids.
Investment Properties -
- $417,000 max loan amount for qualified full doc borrowers w/ 20% down (Freddie/Fannie), as PMI cannot be obtained
- 75% loan-to-values are much better priced than 80%
- Buyer must have 6 months PITI reserves for each property owned
Jumbo Loans-
- Surprisingly, jumbo pricing and availability is getting better on primary residences
- Loans are pretty standard up to 2,000,000
- 20% down up to $1 million; 25% down up to $1.5 million; 30% down up to $2 million
- Generally a minimum of 700 FICO
- Two appraisals are generally required over $850,000
