Investors - FHA lender that will loan 580 middle score !

[Joel Owens]

Hey everyone,

I still talk occasionally to mortgage brokers on the residential side as we are friends from years back even though I only do commercial now.

In my discussions one company recently came out with a 580 program for FHA.

I couldn't believe it. I have seen some companies do a 600 middle but their loans the rate jumps 100 basis points higher from going from 640 middle score to 600. I was thinking of rehabbers for flips and other investors on lease to purchase deals this would help get their properties sold. I know people with scores that low generally have credit issues to clean up but anything can help sell a property.

The lender is carringtonhomeloans.com and they are in most states. I have no affiliation with this company whatsoever. I am just sharing something that I thought might be of value to some BP members. The local builders here couldn't believe this program as their in house lenders wanted 660 middle. Carrington's 580 and 600 plan the basis points on the loan might jump 10 or 20 points from premium credit but not 100 points like other programs I have been hearing about. Seems like the lending market is thawing out some.