Barclay Butler Financial Inc.

March 14, 2023

🎓 What You Should Know About Student Loans Before You Buy a Home or Refinance

Student loans can help or hurt your mortgage approval — and in some cases, they can stop the process entirely. Different loan programs treat student loan debt differently, which means the type of mortgage you choose matters more than most borrowers realize. Here’s a clean breakdown of how FHA, VA, USDA, and Conventional loans look at student loans. 🚫 […]

203- K mortgage 0 1 min read

March 14, 2023

How Collections & Charge‑Offs Affect an FHA Mortgage

1. Medical vs. Non‑Medical Collections Medical collections/charge‑offs: Ignored for FHA qualifying No 5% rule Only impact your credit score, not your DTI Non‑medical collections/charge‑offs: FHA requires lenders to count 5% of the balance as a monthly debt Applies whether the loan is DU, LP, or manual underwrite ✅ The 5% Rule (The Big Change) FHA does not require you to […]

Bad Credit 0 1 min read

March 14, 2023

Mortgage company overlays helping or hurting home sales.

Most mortgage companies have overlays on their products. An overlay is an additional requirement added on top of a FHA, VA, USDA or conventional mortgage guidelines. One example is FHA allows down to a 580 credit score if you want to put down 3.5% down payment. 95% of the lenders state you must have a 640 credit score and about […]

2-4 unit building 0 1 min read

September 18, 2018

FHA Loans Available with Credit Scores as Low as 500

Most lenders require a 620 credit score for FHA financing because they rely only on automated approval systems such as DU (Desktop Underwriter) or LP (Loan Prospector). At Barclay Butler Financial Inc., we can help borrowers with lower credit scores: 500–579 credit score → Eligible with 10% down 580+ credit score → Eligible with 3.5% down ✅ We offer Automated […]

2-4 unit building 0 33 sec read

October 3, 2014

How do collections and charge-offs affect you getting approved for a FHA mortgage.

It used to be that collections and charge-offs did not affect you getting an FHA mortgage, but with the new regulations, they can stop your approval in its tracks. Medical collections & charge-offs are still exempt to the new rules, they will not affect you except for your credit score going down. Now with the new rules any customer who […]

Bad Credit 0 58 sec read

September 22, 2014

Mortgage company overlays helping or hurting home sales.

Most of the mortgage companies have overlays on their products. An overlay is an additional requirement added on top of a FHA, VA, or conventional mortgage guidelines. One example is FHA allows down to a 580 credit score if you want to put down 3.5% down payment. 95% of the lenders state you must have a 640 credit score and […]

Automated underwriting 0 1 min read

🎓 What You Should Know About Student Loans Before You Buy a Home or Refinance

How Collections & Charge‑Offs Affect an FHA Mortgage

Mortgage company overlays helping or hurting home sales.

FHA Loans Available with Credit Scores as Low as 500

How do collections and charge-offs affect you getting approved for a FHA mortgage.

Mortgage company overlays helping or hurting home sales.

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