Borrowers with lower credit scores, high monthly debt payments, job gaps, or past financial hiccups typically struggle to find a mortgage lender who will work with their unique situation. Finance of America Mortgage is changing that with a new proprietary loan program designed specifically with these borrowers in mind.
Two-X Flex Expanded was created for borrowers who don’t fit inside the traditional lending box. Even if borrowers have less-than-stellar credit, a high debt-to-income (DTI) ratio, or a negative credit event in their financial past, they might still qualify for Two-X Flex Expanded.
Self-employed borrowers who rely on commissions, bonuses, contract work, and other non-traditional income sources usually face hurdles when applying for a conventional mortgage. However, FAM’s Two-X Flex Expanded loan program may work for their needs with more flexible documentation requirements than conventional loan programs.
Here’s a quick overview of the key borrowing guidelines for Two-X Flex Expanded:
- Up to 85% loan-to-value (LTV) ratio allowed.
- No private mortgage insurance required.
- Minimum 640 FICO score.
- Up to 50% debt-to-income (DTI) ratio accepted.
- One missed payment (30 days late) acceptable within the last 12 months.
- Two-year waiting period after a major derogatory credit (foreclosure, pre-foreclosure, deed-in-lieu, short sale) or bankruptcy discharge/dismissal.
- Four-year waiting period after multiple credit events.
- Three-month waiting period after COVID forbearance was exited within the last 12 months and borrower missed five or more payments.
- Loan amounts of $100,000 up to $2 million.
- Available in all U.S. states.
Want to learn more about this and other loan options? Speak to a local Finance of America Mortgage Advisor today.