FHA Direct Lender 500 credit on refis 531 for purchase

Chuck DeMonte · Joined: 17 Apr 2009 Posts: 51

Real quick I know people are having trouble getting loans just wanted to inform loan seekers what my company does.

We are one of the largest FHA lenders in the country and maybe have some most flexible guidelines out there.

We are a Direct Servicer/Lender licensed in 47 States.

I can do rate and term refinances up to 97.75% Loan to value.
85% on a cash out refi
96.5% on a purchase

On refinances I can go as low as a 500 credit with no mortgage lates.
If you havent had any mortgage lates in the past 12 months but within 24 months I need at least a 530

If lates in the past 12 months I need 550 and up.

For purchases I need a 531 and up

I know its tough to get loans so if you need help or just would like to ask a question please feel free to email me.

jimb12345 · Joined: 24 Jun 2009 Posts: 55

how are you going so low on a 500 credit score. this is very low.

Chuck DeMonte · Joined: 17 Apr 2009 Posts: 51

We are a direct lender so we can dictate what we want to lend on. As far as i know FHA does not have a minumum credit score so if you are a certified FHA lender you can set the bar where you want. Most lenders have just chose to stop at 620.

benschwahn · Joined: 26 Aug 2009 Posts: 2

Do you really want to know why they can go this low? it's because of the fees they charge. I just found out today on my good faith estimate. They wanted the seller to bring $8000 to the table then they wanted me to bring $1900 for closing costs and then my $4500 for my down payment wait it gets better. This is for a house costing $139000 oh did I mention that I have to pay $2300 just to get a lower interest rate only 1.5% Either way the sellers told me to get BENT or in other words go F*** myself. Well I called good ol Lend America and they think this is normal fees. NOT. The normal fees should be around 3% of the cost of house and my down payment give or take a few hundred dollars. Not $14,500 so in other words Lend America can go F*** themselves. Thanks for wasting my time. :evil:

Chuck DeMonte · Joined: 17 Apr 2009 Posts: 51

Thats actually not the reason we can go so low, but since you seem to know. Then maybe you should know that generally with a lower credit score you are a higher risk there for it is naturally going to cost more a little more.

When you get car insurance, credit cards, car loans etc if you have a lower credit score in turn making you a higher risk do you get higher payments and rates or whatever the case may be??

The fact of the matter is getting charged 1.5% for a rate discount is not out of the ordinary. In fact I just actually did a side by side comparison with a good faith estimate from here and one from chase and not only are we charging less for the same rate the total closing costs are lower and they only will do 620 and up!

Furthermore when doing an FHA loan 3% is not accurate for what the closing costs should be. Right off the bat you have the UFMIP which is the Up Front Mortgage Insurance Premium that is 1.75% of the loan amount more then half of what you think the closing costs should total.

Also the way we structure our loans all of our rates are at a discount fee, this is because we dont charge an origination fee or application fee we dont do a broker fee.

Let me ask you a question do you work for free? So why should I?

Also I would not be working for a place nor do a loan for somebody when I didnt feel I was giving them the best deal possible.

So I am sorry that your loan didnt work out but many times people have a huge misconception of what the "norm" is for closing costs, but we happen to be helping many well deserving people get loans when they cant get them anywhere else IN THE COUNTRY.

This $8K they wanted the seller to bring to the table was that in the form of a sellers concession?

benschwahn · Joined: 26 Aug 2009 Posts: 2

So is Lend America still Operating I can't seem to find them anymore?