Comments on: FHA Loans Provide Home Financing for “Unconventional” Borrowers http://www.fhaloanpros.com/2009/10/fha-loans-provide-home-financing-for-unconventional-borrowers/ The Unofficial Guide to FHA Loans & Mortgages Tue, 17 May 2011 20:16:59 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Dave http://www.fhaloanpros.com/2009/10/fha-loans-provide-home-financing-for-unconventional-borrowers/#comment-69195 Dave Fri, 30 Oct 2009 16:48:29 +0000 http://www.fhaloanpros.com/2009/10/fha-loans-provide-home-financing-for-unconventional-borrowers/#comment-69195 The actual loan mentioned from Colorado was a purchase transaction originated by Cherry Creek Mortgage. The fico was over 700 and, per the article, after paying her mortgage she had used half of her "take home pay" and was left with 1200. That is a net income comparison. Loans are underwritted using gross income. I calculate that her income and this payment produced about a 38% ratio. She has good credit, good ratios, and purchased a home that was completely in need of repair, which she has done, so she also improved the community. Fact is, this loan would have been done again unde those terms and should have been. Nowhere in the NYT article did it say she had bad credit, which she did not. The actual loan mentioned from Colorado was a purchase transaction originated by Cherry Creek Mortgage. The fico was over 700 and, per the article, after paying her mortgage she had used half of her “take home pay” and was left with 1200. That is a net income comparison. Loans are underwritted using gross income. I calculate that her income and this payment produced about a 38% ratio.

She has good credit, good ratios, and purchased a home that was completely in need of repair, which she has done, so she also improved the community.

Fact is, this loan would have been done again unde those terms and should have been.

Nowhere in the NYT article did it say she had bad credit, which she did not.

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