FHA loans are not credit-score driven. Although many wholesale lenders have minimum credit scores, many do not. They traditionally underwrite the file, according to FHA guidelines. If you have no credit or no good tradelines, then FHA loans also allow you to use alternative credit. Monthly obligations like gas, electric, and cell phone bills wherever money is going on a monthly basis as long as you can document it, it’s possible to essentially build a credit history for loan applicants.

Another feature of FHA loans is that all funds can come from a gift, either from a family member, through the seller, or from a down-payment assistance program. Moreover, it’s permissible to have a six percent seller contribution on top of the gift funds which can go towards paying all of the closing costs. FHA Loans also offer market interest rates with no mark up for the high LTV that comes with other high LTV programs. FHA loans can be used for purchasing a home or refinancing a home. If you can even use an FHA loan for a cash-out refinance, but the maximum LTV is 95%.

If you need an FHA loan or have questions please feel free to contact me. I can help you with an FHA loan in all 50 states. If you would like a free FHA Loan information packet, please feel free to call me at 302-368-7132.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713