Miami-Home-loan, and Element Funding, direct lending mortgage bank, found there has been some good news in the past month if you are a potential 1st time homebuyer.  The good news is that credit  FICO  scores have been reduced.  Jim Carter, senior loan officer, reports on the details.

Miami-Home-Loan and Florida Housing Have a New Announcement

Fl-Bond-Housing & Miami Home Loan

Fl-Bond-Housing & Miami Home Loan


 2015 was a record setting year for our Homeownership Programs. Through your efforts, 4,327 Floridians became homeowners in 2015. In the face of TRID, Program changes and other headwinds, you originated $547,846,734 in Program first mortgage volume which was leveraged with almost $45,000,000 of Program downpayment (DPA) and closing cost assistance, also a record amount. We thank you for your hard work and efforts and will try to help you surpass these records in 2016.

We are pleased to announce that beginning MONDAY, JANUARY 11, 2016,you will once again be able to input reservations for FHA loans with minimum FICO scores of 640. We successfully reached an agreement with our investor that will enable us to serve this important credit tranche of FHA borrowers. There will be no increase in fees or costs to these borrowers, so there are no additional Program overlays or “nuances” that you need to be aware of. We will be updating the Guides and training but this will take a few days to accomplish. Please keep a copy of this announcement in case your underwriter does not receive this notification and questions you about this change (we know underwriters NEVER do that with Loan Officers).

We would also like to take a moment to clarify acceptable uses of Program DPA as we are suddenly receiving a lot of questions that haven’t been asked in the past. Our funds can be used for normal and customary closing costs and downpayment. This includes additional downpayment used to reduce the principal loan balance of the first mortgage beyond that required by the Agencies or GSEs. However, what IS NOT ACCEPTABLE is using our funds to make up any shortfall between the sales price and appraised value of the home being purchased. Additionally, any borrower debt that is required to be paid off prior to or at closing cannot be paid from our funds. In both cases the borrower must use their own funds to bridge the gap in sales price/appraised value or to pay off the debt.

If you have any questions please email or call us and we will be happy to provide guidance.

  We wish you all a happy and prosperous 2016!!

 Jim Carter 305-525-6742

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