Grand Rapids mortgage lender, Inlanta, has new ways to help FHA, VA, and USDA home buyers qualify for government-backed loan programs, even if they have less-than-perfect credit, or in some cases, no credit rating.
“We know that people are more than their credit score,” said Jonathan Arnold, a branch manager and loan originator with Inlanta. “There are people who have never missed a payment, but come in with 581 credit scores. Meanwhile, there are people finishing up bankruptcies that have a score of 650. Sometimes the credit score just doesn’t tell the whole story.”
The new program, unique to Inlanta, allows for eligibility with scores as low as 581 — about 60 points lower than most other banks and lenders. But the lower threshold doesn’t mean automatic approval or imply subprime loan status.
“This is a 30-year fixed government-secured mortgage. It is designed to help people whose credit score may not tell their whole story – the people who’ve fallen through the cracks but truly deserve a home loan,” Arnold said.
For example, Arnold was recently able to assist a veteran who was earning a middle-class income and had a lower credit score simply because he doesn’t borrow money or use credit cards.
Low Credit Score Triggers Manual Underwriting
One of the reasons Inlanta is able to offer consideration to people with lower credit scores is because the company is willing to undertake manual underwriting, which is looked at more closely. For example, it’s critical that there are no outstanding, unpaid, non-medical collections, and that debt ratios are within guidelines. Careful consideration of all factors leads to better odds of approval.
“The government products are overlaid by investors risk tolerances. We want to make good loans. Our experience shows that it’s very possible to make a good loan to people who on the surface might otherwise look unqualified. People shouldn’t be punished for avoiding debt,” Arnold says.
Can You Qualify For a Mortgage With No Credit Score?
Young people who’ve never had credit and new immigrants are two groups of people who assume that home ownership eludes them until they establish credit. Yet owning a home is one of the safest, fastest ways to build financial security. One way to quickly developing a credit score is to get a non-secured credit card. But there are other ways to help turn the dream of home ownership into reality. With Inlanta’s new, government-backed No Score program for FHA, VA and USDA candidates, the company will qualify borrowers using non-traditional lines of credit, such as Insurance Premiums, Cellphone Bill, Rent History, and Utilities (water, internet, electricity).
“We’re happy to be able to help qualifying individuals achieve the dream of home ownership with this product,” Arnold says. “Owning a home is the best investment you can make.”
For the No Score program, applicants must be otherwise eligible for FHA, VA or USDA government-backed programs, borrowers must meet all qualifying criteria, including debt-to-income ratios. Pricing will be affected and may mean higher cost to the borrower. This program is not to overcome bad or delinquent credit history.
*VA loans are available for eligible veterans only. **Income and property restrictions apply on USDA loans.
Contact Us For Complete Details on Government-Backed Loan Options:
Get Information on the 581 or No Score Programs
Quick Facts on USDA, VA & FHA Programs & Eligibility
USDA: Rural Home Loans/Mortgages
- No down payment required
- closing costs can be financed into loan
- 30-year loan at fixed rate
- must buy home in USDA eligible area: town population under 20,000
- flexible credit history requirements
- first-time home buyers eligible
*property and income restrictions apply
VA: Veterans Administration Home Loans/Mortgages
- no down payment
- no private mortgage insurance
- cash reserves not required
- closing costs and prepaid expenses can be paid by seller
- streamline refinance available
*program available to veterans only
FHA: Federal Housing Authority Home Loans/Mortgages
- low down payment
- gift funds allowed
- cash reserves not required
- flexible credit history requirements
- closing costs can be paid by seller
- flexible debt-to-income ratios
- streamline refinance available