Musings of a Career Consultant

SoCal Texan in Bmore Leading Rock Stars

Good FICO, Bad FICO, Buy a House? April 7, 2011

Filed under: Uncategorized — mkzabora @ 9:17 am
Tags: , , , , , ,

In today’s world, I often get questioned about someone with a good FICO score wanting to buy with someone who has a bad FICO score. Question: “Can we buy together?” Answer: That depends. (Are you picking up on a trend here?)

See, everyone’s credit, debt, income, expenditures, etc. are different so I can’t defiantly say ‘yes’ or ‘no’ but I’ll tell you who can. One of my fabulous Lenders on my Affiliate List. I’d love to give you a resounding “YES!” but that might not be the case.

More likely than not, there are 3 situations that can occur:

  1. Both GF (Good FICO) and BF (Bad FICO) can qualify for the loan and will both be on Title.
  2. GF qualifies for the property by themselves and we can add BF to Title just after we Close Escrow.
  3. Unfortunately, GF is good but not good enough to carry BF. What does this option really mean? That Your Lender and I will help you devise a plan to get you to a place where you can qualify.

Easiest way to figure it out, is to talk to a Lender. If the sound of this makes you a bit uneasy, I’d be happy to sit down with you, too. I’ve done it many times and will do it a few million more, I’m sure.

Should you have any questions about anything you’ve read here, please feel free to call your favorite REALTOR, Melissa Krchnak :)


FHA Changes Coming Soon February 1, 2010

Per CAR Policy changes include:

  • Raising the up-front mortgage insurance premium: The premium will rise to 2.25% from its current 1.75%.  HUD is expected to release a Mortgagee Letter making the premium increase effective in the spring.
  • Raising the minimum credit score requirements: New borrowers will be required to have a minimum FICO score of 580 to qualify for the FHA’s 3.5% down payment program.  New borrowers with less than a 580 FICO score will be required to put down at least 10%.  FHA expects this to take effect in early summer after it goes through the normal regulatory process.
  • Reduce allowable seller concessions:  The agency is lowering the maximum permissible level to 3% from its current 6% limit.  FHA expects this to take effect in early summer after it goes through the normal regulatory process.

Click here for more info.

Also, my investors can celebrate because the 90-day flipping rule has been lifted temporarily. That’s exciting for the FHA Buyers, too!

I’ll update ya’ll about YPN information and laws when I get back from the CAR Business Meetings!