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FHA Portfolio Mortgage for Borrowers with 580-639 Credit

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Over the past few years, thousand of Nevadans have seen their credit scores tumble due to circumstances beyond their control. Have you, a friend or a family member gone through a divorce or separation, lost your job, or suffered from a serious illness without adequate insurance? Your life has been turned upside-down and your credit has suffered. And now we are going through the greatest real estate buying opportunity of our lifetime. You would like to buy a home yet are afraid you won’t qualify.  If this sound like you, I have great news.

I now offer an FHA Portfolio Mortgage designed for people just like you. This program is for borrowers who have experienced a one time, life-changing event. Due to extenuating circumstances, your credit score no longer meets standard FHA guidelines.

Standard FHA financing requires a middle credit score of at least 640 for all borrowers. Loans where the scores are below 640 cannot be sold in the secondary market. According to former HUD Commissioner David Stevens, this credit threshold excludes as many as 15% of FHA borrowers. “Minorities and borrowers in communities hardest hit by the recession are most likely to loose based on FICO scores” according to Stevens. Our Portfolio program was designed to meet the needs of these borrowers.

Our FHA Portfolio Program is for the borrower whose current credit situation is due to extenuating circumstances beyond their control as opposed to financial mismanagement. The borrower will need to provide documentation that the derogatory credit was the result of extenuating circumstances beyond their control rather than as a result of financial mismanagement. The underwriter must be satisfied that the circumstances leading to the credit problem are  not likely to reoccur.

Examples of extenuating circumstances include but are not limited to;

  • Death of the primary wage earner, ·
  • Prolonged loss of employment for reasons beyond the borrower’s control such as site closings,
  • Mergers or reductions-in-workforce,
  • Long-term illness or disability not covered by insurance.

Borrowers for this and all mortgage loans now need to show evidence of being:

  • Credit-worthy,
  • Have the capacity to repay the obligation,
  • Have no additional or potential overlaying of risks.

Low home prices and low interest rates have combined to make owning a home more affordable than any other time in my lifetime. Our FHA Portfolio Program is one of many solutions we offer to make the dream of owning your own home a reality. What is stopping you? Call me!


Lets find the right solution for you and your family.