125 Home Loan Update
All conventional home loan banks have stopped offering 125 loans so only private investors offer that type of mortgage loan. They are very strict with their guidelines and they underwrite with the low score of whichever bureau has the lowest score and they want a $5,000 residual income after all your bills are paid. The 125 mortgage suddenly has the highest default rate out of the second mortgage loans so they are strict.
FHA mortgage products have become popular because they allow debt consolidation and cash out refinancing up to 95% loan to value. If a client has no other alternatives our attorney could possibly settle their debt which would significantly reduce the balance and the payments. Debt settlement is a viable solution that does not have the long lasting negative credit impact that bankruptcies have.
