Nontraditional Credit with FHA loans. what to be aware of:
1. Directed at borrowers with little or no credit.
2. Must have 3 alternative trade lines for 12 month with good history.
3. Borrowers who have no Tier I credit will need:
A. Two months of mortgage payments in the bank.
B. No exceptions wil lbe granted on Ratios over 31/41.
4. Credit must be clean for last 12 months on all alt trades.
Remember that Clients with little credit some adverse credit or no credit at all can still qualify for a mortgage, currently I have 5 files that are all manual underwrites with Alternative credit trades who were told NO by 1 or 2 other mortgage companies. luckly for them they were with a Realtor who has heard of me as the Rain Maker and I am getting them done.
Here is a link to the Mortgagee Letter put out by Hud.
Ricky Khamis, CMPS
NMLS 173141 | LO-0911814 | CA-DOC173141
Branch Manager | Corporate Office
Arizona and California CE Instructor
AMERIFIRST FINANCIAL, INC.
1550 E. McKellips Rd, Suite 117
Mesa, AZ 85203
Amerifirst Financial Disclosure- The opinions expressed here are the personal opinions of Ricky Khamis. Content published here is not read or approved by Amerifirst Financial before it is posted and does not necessarily represent the views and opinions of Amerifirst Financial.