For FHA Purchase transactions effective 1-15-11, loan scores below 600 are allowed
Minimum loan score lower than 500 = not allowed
Loan score 500-579 allowed with maximum 90% LTV and the additional requirements listed below
Loan score 580-599 allowed with maximum 95% LTV and the additional requirements listed below
Loan score 600 and higher allowed with maximum 96.5% LTV
Additional requirements
All of the following requirements apply for transactions with loan scores less than 600:
For Accept/Refer Credit Risk Class:
Accept: maximum rations 31/43
Refer: maximum ratios 31/36 & two months of PITI
For all Credit Risk Classes
Seller contribution limited to 3%
Gift funds may NOT be used for the required 5 or 10% down payment
Down payment Assistance Programs may NOT be used for the required 5 or 10% down payment
Las Casas Realty Executive Offices
5713 York BlvdLos Angeles, CA 90042
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