FHA Purchases (Min 530 score)
- 10% down and 3 mths liquid reserves
- 12 months cancelled checks or Management VOR 0x30
- Must have 3 open and active tradelines for last 12 mths
- Payment shock limited to 1.5 times rent
- 31% of gross monthly income towards housing
- 43% of your gross monthly income must include housing explense plus all other monthly payments reflected on your credit report.
- No late payments on your credit report in last 12 months
- All past collections other than medical must show a zero balance.
- NO late payments on your credit report after a Bankruptcy.
FHA Refinance’s ( Min 530 score)
- 0x30 days late on your current Mortgage
- 31/43 MAX DTI
- No cash in hand
- Must provide you with a Tangible net benefit
- NO lates after a Bankruptcy
- NO consumer lates in last 6 mths
- Must have 3 open and active tradelines for last 12 months
Reserves-Reserves are defined as actual CASH IN THE BANK. These funds must demonstrate a systematic savings pattern on the part of the borrower, bases on verifiable bank statements.
Reserves are NOT any of the following:
– Large deposits
– Tax refunds
– Sales of personal property
– 401k/Pension/retirement Funds
– Any funds that cannot be properly sourced