FHA Credit Flex Program

1st Continental Mortgage offers more flexibility than any FHA Loan resource we are aware of. Our FHA Credit Flex program allows a wider range of FHA financing exceptions to FHA Underwriting Guidelines which allows more home buyers to qualify for an FHA Insured loan than would normally occur using the standard FHA Underwriting Process.

Standard FHA Underwriting Guidelines for financing apply which means, credit scores are not considered, cash reserves are not required gifts are allowed etc.

The FHA Credit Flex option is only offered in the 30 Year Fixed Rate program. This is not a HUD program, but a underwriting description for how this type of FHA Loan is underwritten and financed. Underwriting approval and exception policies still apply.

Types of additional exceptions include:

• New consumer credit counseling is allowed
• 12 months out of Chapter 7 Bankruptcy
• Higher Debt Ratios up to 48%

FHA Credit Flex Advantage

Though the starting interest rate for the FHA Credit Flex financing program is significantly higher than the standard FHA Rate, the program offers significant borrower advantages.

• Easier Mortgage Loan Qualifying
• 12 months on time payments means home owners can quickly streamline refinance to a much lower interest rate FHA Loan. In some instances as quickly as 6 months.
• The start rate is typically much lower than the starting rate for a sub prime adjustable rate loan.
• This loan is an FHA Hud Insured Loan.

Participation Requirements

Under the FHA Credit Flex financing program, home buyers must agree to the following terms:

• All Collections must be paid or established in a acceptable repayment plan prior to closing. (Excluding accepted disputed accounts with adequate documentation) These accounts can be placed in a new Consumer Credit Counseling Program.
• The maximum loan amount is 95% of the purchase price.
• Buyer must use 3% of their own funds towards down payment 2% may come from an acceptable down payment program.
• Buyer must attend a HUD approved home buyer program prior to closing.
• Buyer must provide documented on time rent payments for the prior 12 months in the form of canceled checks or copies of money orders.
• All open credit accounts (non collection accounts) must be current, brought current and shown current on the final credit report.
• All judgments and liens must be paid in full.
• Auto-Pay through the borrowers checking or savings account is mandatory.