Posted by Ed Garcia on January 07, 2001 at 15:36:54:
FHA loans are not a catch all for financing people with credit problems or who are out of budget. Their loans are calculated differently than conventional financing, and yes, sometimes they are easier to qualify for from the standpoint of credit, and debt to income ratios. There are program in the secondary or Sub-prime market, that will lend, at 45% debt ratio.
What I don’t understand is since you’re working with a broker, then why isn’t your broker pre- qualifying you for an FHA loan, as well as conventional?
Jesus, as you know, you haven’t provided us with enough information about you or the deal. Rather then go into that now; my suggestion is for you to allow your broker to finish his job. He already has a head start on the information that you’ve given him, as well as an up to date credit report. Since the buyer choose the broker, the buyer is more likely to work in conjunction with the broker. If and when the broker fails, then I would suggest for you to get the facts as to why the broker could not get your deal down, and call me. I will then help, by restructuring the deal based on the out come.
If not, I will just be guessing and talking hypothetically.