Borrowers Gain More Purchasing Power With New Loan Program from Finance of America Mortgage 

Published on: February 4, 2022

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.