If you are a hard money loan real estate investor and are using hard money to purchase a property and rehabbing it to sell, you should be knowledgeable in residential finance. Your potential home buyer needs to be a solid home buyer with a solid pre-approval. If your home buyer is pre-approved for a FHA Loan, you need to make sure that your property meets FHA lending guidelines. HUD, the parent of FHA, requires that in order for a home buyer to be eligible for a FHA Loan, the property needs to be habitable with no peeling paint, no broken windows, no safety hazards, and all appliances working. The property needs to be safe and secure and all utilities needs to be on. The hot water needs to be working.
FHA Lending Guidelines
For a home buyer to qualify for a FHA Loan, the minimum credit score required is 580 FICO. There are mandatory waiting periods after bankruptcy and foreclosure. Mandatory two year waiting period after a bankruptcy discharge date and mandatory waiting period of 3 years after a foreclosure, deed in lieu of foreclosure, and short sale. Waiting period after foreclosure and deed in lieu of foreclosure is from the recorded date of the foreclosure and/or deed in lieu of foreclosure which is reflected on the recorded of deeds and/or public records. The waiting period after a short sale to qualify for a FHA Loan is the date of the short sale closing date reflected on the HUD-1 Settlement Statement.
FHA Mortgage Lenders with No Lender Overlays
Many FHA Mortgage Lenders have overlays. Mortgage Lender Overlays are additional guidelines that surpass the minimum federal lending guidelines imposed by FHA. For Example: FHA guidelines on minimum credit scores to qualify for a home purchase loan is 580 FICO. A FHA mortgage lender may impose a lender overlay on credit scores of 640 FICO. Even though FHA only requires a 580 FICO credit score of 580 FICO, this home buyer cannot qualify for a FHA Loan with a lender who has credit scores overlays of 640 FICO.
Contact Gustan Cho of Gustan Cho Associates: FHA Mortgage Lender with NO OVERLAYS
Gustan Cho and his team of licensed FHA loan originators are mortgage bankers and correspondent mortgage lenders with no FHA overlays on their FHA Loans. As long as you meet minimum FHA Lending Guidelines, Gustan Cho and his Associates will close your FHA Loan. Over half of Gustan Cho’s clients are borrowers who were told they do not qualify due to lender overlays. Check out Gustan Cho’s website at www.gustancho.com or email him at GLCProperties@aol.com. You can contact him at 262-716-8151. Gustan Cho works closely with many real estate developers. If your home buyer of your rehabbed property gets a pre-approval from Gustan Cho, you can bet that your home buyer will close on their home purchase.