Some of the options that we can currently offer to borrowers who for whatever reason have lower credit scores, and that other lenders may not be able to offer, include:

• FHA Loans to borrowers with FICO scores as low as 530.

• FHA Loans to borrowers with a non-traditional credit history or insufficient credit (i.e. no FICO score at all) with no hit to maximum LTV.

• Manual underwriting of FHA loans (using common sense rather than just algorithms) for borrowers with low FICO scores but a compelling argument for why they would be able to make their payments consistently and on time in the future.

• FHA 203(k) Streamline rehab/construction loans for borrowers with a FICO score of at least 580, allowing borrowers (both purchase and refi) to take out up to $35k extra to put towards improving the property.

• Loans for new construction manufactured homes and mobile homes for borrowers with FICO scores as low as 580, and for existing manufactured homes and mobile homes for borrowers with FICO scores as low as 620.

• One-time-close construction loans (aka Construction-to-Permanent/CTP loans) for manufactured homes, mobile homes, and modular homes (including acquisition of land) for borrowers with FICO scores as low as 580.

• High-balance FHA loans and Jumbo VA loans (in both cases, loan amount > $417,000) for borrowers with FICO scores as low as 620, with no reduction in maximum loan amount or maximum LTV.

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The Ethical Homes team offers construction/A&D loans for terms of up to 2 years, on loan amounts of between $500k and $500 million. Interest rates for these loans generally run between 1-9 percentage points higher than conventional residential mortgage rates (depending on the specifics of the scenario). Borrowers generally need to contribute at least 20% of the initial acquisition costs (30% preferred), and the eventual stabilized post-construction value of the property should provide a final LTV of no more than 75% (65% preferred).

If you have acquisition & development funding needs, please do not hesitate to contact us and we would be glad to review your scenario for you.

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