Just Approved: A low credit score doesn’t have to mena the end of the road.
Just Approved: A low credit score doesn’t have to mena the end of the road.
Backstory: A series of Bay Area borrowers rejected a young client but sent him to Alex Greer, who is well versed in the complexities of the buyer’s purchasing scenario.
The borrower had a credit score of less than 620, and all of the down payment was coming from an employer.
Federal Housing Administration purchases with a 620 credit score are something that Alex Greer has certainly funded in the past, but $120,000 coming from the employer as the down payment, presented an issue.
Given that FHA guidelines now only allow gift down payments that come from relatives, a different path was needed.
The solution was to have the employer give the borrower the $120,000 as a bonus through their payroll system.