Those denied by other lenders are local citizens often vulnerable to circumstances beyond their control, publishes fha-info.com
Spring, TX -- (SBWIRE) -- 12/09/2015 -- While the U.S. Census Bureau reported an estimated 10 percent uptick in home sales across the country as of October 2015, at least 15 percent of mortgage loan applications were denied over the course of the year. Top lending institutions list credit history, unacceptable debt-to-income ratio and lack of financial reserves as primary reasons for turning away would-be homeowners. In response to this development, Gerry Nicodemus of AMCAP Mortgage - North Houston has launched the latest FHA information geared toward local potential home buyers.
Nicodemus confirmed, "A number of Americans apply for home loans with many different conventional lenders only to receive a resounding 'no' from them all. The road to home ownership holds a few hidden pathways though few know just where to find them. While the FHA still holds borrowers to certain guidelines, the organization also realizes life is filled with extenuating circumstances and was developed with those in mind."
Addressing the issue of credit, typical lenders expect scores of around 700; in contrast, FHA loans can be acquired with a score of 580 in some cases. Rather than taking the numbers alone into consideration, lenders under the FHA program are authorized to delve further into these matters to determine root causes of imperfect credit history. Unemployment stemming from recession, temporary critical illness and death of a household primary income provider are common elements often considered forgivable by the FHA.
Debt-to-income ratio refers to combined monthly expenses versus income. Conventional lending institutions require a back-end ratio of approximately 35 percent whereas the FHA prerequisite is generally 50 percent, a trait exclusive to this organization. Down payments on traditional home loans range between 10 and 20 percent depending on various factors as opposed to 3.5 percent for eligible applicants through the FHA. Steady employment with a conceivably solid future is required before receiving FHA consideration.
Concluded Nicodemus, "We realize our applicants are far more than just credit scores and financial figures; they're local citizens sometimes vulnerable to issues beyond their control. By providing information about the loans we offer, we hope to show those in our area there may still be hope where all seems lost. Detailed material can be found on our website, and of course, we welcome those who've been turned down by other lenders or feel they don't qualify for the average mortgage loan to contact us online or in person."
About AMCAP Mortgage - NHB
With a commitment to exemplary customer service and prevailing where other lenders fall short, AMCAP Mortgage - NHB is a registered entity with the Texas Department of Savings and Mortgage Lending. Staff members have streamlined their approach to home loans, making the process more straightforward for clients striving to achieve the American dream.