FHA has Lowered the Minimum Credit Score
Paramount Residential Mortgage Group is now able to offer loans to those with a not so perfect credit score. As of today, if you have a credit score of 550 – 640, you may qualify for an FHA purchase loan!
- Eligible on the 30 and 15 year fixed only. No ARM’s or Jumbo Loans.
- Primary Residence 1-2 units
- Purchase, rate/Term only. No streamlines nor cash out
- All borrowers on title must be on the loan.
Paramount Residential Mortgage Group is now offering an FHA loan with a minimum credit score of 550. This program has opened doors for many buyers who originally wouldn’t have been able to purchase a home with the lower FICO score. Today the minimum credit score is 550.
The income qualifications for this new loan program with the lower credit score have also lower their debt-to-income ratio as well. The maximum DTI is 41%. This means, that your debt such as credit cards, car payment, student loans, etc, can be no more than 41% of your gross monthly income. This percentage also includes your new monthly mortgage payment with taxes, insurance and HOA dues, if any. If you have a score of 620 or above, the maximum DTI is higher, at 50%, for a FHA loan purchase.
The assets required are the exact same on this FHA loan type, no matter what your credit score turns out to be. The borrower must have at least 3.5% of their own funds prior to using gift funds on a purchase transaction. The maximum seller contributions towards closing cost are 3%.
PROPERTY TYPE ALLOWED
If the borrower has a credit score of 550-619 the property must be occupied as their primary residence, 1-2 unit home. There are also, no cash out transactions allowed, nor streamline refinancing. Also, if you are married in the state of Florida, your spouse will be required to be on the title to the home. For credit scores below 620 both spouses will also have to be on the loan and occupy the home.
This loan is newly available so take advantage today. You can select the Contact Us tab on the right side of this screen if you have questions or you may complete the live quote form, also on the right, in order to receive a rate quote from a licensed loan professional. PRMG Brentwood services is currently lending in the state of Florida only!