Affordable Merit Rate Mortgage

Affordable Merit Rate® Mortgages offers incentives rate reduction for payments that are on time. The Affordable Merit Rate® Mortgages is a mortgage that is perfect for the borrower with a bad or just fair credit history. The mortgage takes advantage of the Loan Prospector® automated underwriting technology, which helps you figure out if you qualify.

The Affordable Merit Rate® Mortgages gives those borrowers not only a second chance by providing them with a mortgage despite their poor credit history, it also helps in improving one’s credit history as long as one pays on time.

The Affordable Merit Rate® Mortgages is available for property types which are 1- to 2-unit primary residences, property under development, manufactured homes and condominiums. This mortgage is eligible in Freddie Mac’s 30-year fixed rate mortgages.

The key features this mortgage gives are it can provide lower initial interest rates compared to others. After 24 months of consecutive on time payments, there is an automatic and one time reduction in interest rate by 1 percent. Transaction types are purchase and no cash out refinance; this chance is given to the borrower with a four year period to pay for the monthly payments on time.

If a borrower pays late in the mortgage within the first 24 months, they will be re-evaluated in the 36 month or the 48 month anniversaries of the mortgage’s payment due date.

If The borrower has been delinquent for 30 days or more or twice been delinquent for 30 days, or if he or she has been delinquent for 60 days or more or twice delinquent for 60 days, the mortgage is deemed ineligible to be delivered to Freddie Mac. If the qualifying borrower’s payment history for all mortgages is not verified in the Loan Prospector credit report, the seller will be the one to manually verify and document all mortgage payment histories in the last 12 month period.

Although one is given another shot in getting a mortgage, the borrower should still be careful and be diligent in order to avail the benefits of the Affordable Merit Rate® Mortgages. Of you are an interested borrower with a “not-so-perfect” credit history, you might be interested in this wonderful offer to get you back on track.

Questions:

1) What state is this program available in? All

2) Is there income limitations (if yes how much)? No

3) What is the maximum LTV (loan to value)? 90%

4) What is the minimum credit score required? 620 fico

5) What is the maximum DTI (debt to income) ratio? 45%

6) Are you required to be any of the following? No

o Civil servant o Fire Fighter o Teacher
o Military

7) Is this program for primary residence’s only? No

Can this program be used to buy a home? Yes

9) Can this program used to refinance a home? Yes

10) Can this program be used for a manufactured home? Yes

11) Can this program be used for a Condo? Yes