It's not uncommon to see buyers with less than 720 credit scores get pushed through the hoops only to find that the loan they once had.........no longer exists.
No doubt about it: the ability for the Average Joe to get a mortgage in today's credit environment IN A TIMELY FASHION has dramatically changed over the last 12 months! An now, it's a fact that the difference between a 720 mid score and a 620 mid score can cost a buyer an extra 1.25% on the mortgage rate or 2% additional points in cost. On a $250,000 loan, that's an additional $5,000 which can lower the purchasing power by up to 28%!
There is a solution - THE USDA RURAL HOUSING LOAN!
With prices as low as they are, a Rural Housing loan allows for people who didn't think they could buy a house to purchase a home with no money down and payments that they can afford........and that are fixed for 30 years!
You can apply with Northstar Mortgage Group for a Rural Housing loan and be in your new home within 2 weeks!
FHA has no minimum credit score for buyers using this program. However, most investors have a minimum score requirement of 580. We have two investors who will go below this: one will go as low as 560 and one will go as low as 500. However, there has to be a credit explanation letter with extenuating circumstances as to why the credit score is as low as it is in order to be approved.
Currently, FHA has different Mortgage Insurance costs depending on a buyer's credit score.
We also work with a credit repair specialist who helped write the FICO model and is VERY GOOD at helping buyers get their credit scores improved. He is the least expensive I have ever seen - he only charges $200 for an individual or $300 for a couple!
All other guidelines must be met but if you have a client that says their credit is "less than perfect", feel free to contact us to see if we can help get them into a home!
OKALOOSA COUNTY
| MSA Name | MSA Code | Division | County Name | County Code |
State | One-Family | Two-Family | Three-Family | Four-Family | Last Revised |
| FORT WALTON BEACH-CRESTVIEW-DESTIN, FL (MSA) | 23020 | OKALOOSA | 091 | FL | $312,500 | $400,050 | $483,550 | $600,950 | 03/05/2008 |
WALTON COUNTY
| MSA Name | MSA Code | Division | County Name | County Code |
State | One-Family | Two-Family | Three-Family | Four-Family | Last Revised |
| NON-METRO | 99999 | WALTON | 131 | FL | $362,790 | $464,400 | $561,400 | $697,650 | 03/05/2008 |
BAY COUNTY
| MSA Name | MSA Code | Division | County Name | County Code |
State | One-Family | Two-Family | Three-Family | Four-Family | Last Revised |
| PANAMA CITY-LYNN HAVEN, FL (MSA) | 37460 | BAY | 005 | FL | $396,250 | $507,250 | $613,150 | $762,000 | 03/05/2008 |
Effective with all case numbers on or after 10-01-2008, FHA has announced new FHA MIP amounts!
Up Front MIP -
1.75% - Purchases and Qualifying Refinances
1.5% - Streamlined Refinances
3.0% - FHA Secure (Delinquent Borrowers)
Annual MIP -
0.55% - over 90% LTV greater than 15 year term
0.50% - less than or equal to 90% LTV greater than 15 year term
Prior to July 14, 2008, the Up Front MIP was 1.5% and the Annual MIP was .50% in all cases; due to higher risk, they have changed how they charge MIP.
FHA has jumped to 23% of all first mortgage loans last month from 1.8% two years ago and is still on the rise.
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