FHA - Credit Requirements
FHA mortgages are popular with first-time home buyers, existing home owners who want to limit their out-of-pocket costs, and consumers who have limited - or less than perfect - credit histories. So what does FHA look for in a borrower’s credit profile?
FHA requires consumers to have two established credit accounts; however alternative credit sources can be considered by lenders on a case-by-case basis.
Borrowers who are actively paying off a Chapter 13 bankruptcy may be eligible for FHA financing as long as they have been making satisfactory payment for the previous 12 months, can provide an acceptable explanation for the bankruptcy, have re-established good credit, and have been granted permission from the court to enter into new debt.
For borrowers with a Chapter 7 bankruptcy, two years must have elapsed since the discharge date, they must have re-established good credit, and they must provide a satisfactory explanation for why the bankruptcy happened. However, if extenuating circumstances caused the bankruptcy, a 12-23 month waiting period since the discharge date may be acceptable.
Foreclosure or Deed-in-Lieu
Generally a 3-year waiting period is required for borrowers who have had a previous foreclosure or deed-in-lieu event. However, the waiting period may be reduced to 12-35 months if acceptable proof that the event was due to extenuating circumstances can be provided.
CONTACT ME TODAY TO LEARN MORE ABOUT FHA’S CREDIT REQUIREMENTS!
- Why Pre-Approval Should Be Your First Step
- Where Are Interest Rates Headed?
- The Power of Pre-Approval for Agents
- No Lender Fees
- How Low Interest Rates Increase Your Purchasing Power
- Flipped Property Finance Options
- FICO Scores
- Duplex Financing Options
- Discount Points vs Premium Pricing
- Delayed Financing Options
- Jumbo - Credit Challenged
Home Buyer Tips
- What You Need To Know About VA Loans
- USDA-Wide Open Spaces
- The Perfect Home Loan Application
- The Mortgage Process
- Student Loan Debt
- Rising Rent - No Problem
- Rent vs. Buy
- Ready To Make An Offer? 4 Tips For Success
- Path 2 Buy
- Mortgage Insurance
- Look for a Luxury Home? Now’s The Time To Act!
- How We Safe Guard Your Information
- How to know if it’s a condo?
- Getting a Mortgage: Why So Much Paperwork?
- FHA 90 Day Property Flip Waiver
- Do’s and Don’ts During The Loan Process
- Condo Loans - Low Down Payment
- 5 Reasons Home Ownership is a Good Financial Investment
- 2 Myths That May Be Holding You Back From Buying
- Niche - Unique Mortgages
- Veterans Assistance Loan Benefits
- Reverse Mortgage
- Loan Programs - Pros & Cons
- Jumbo Loans
- HUD-184 Native American Program
- HomeStyle Renovation
- FHA 203k Streamline Rehab Loan
- FHA “Back-To-Work: Extenuating Circumstances” Program
- FHA - Home Ownership Opportunities
- FasTrac Approval Process
- 3 Reasons Why First-Time Home Buyers Love FHA
- Home Ready Program
- Jumbo Plus Loans
- Union Advantage
- NHF Platinum - Down Payment Assistance
- HomeScout: Your Unfair Advantage
- FHA - Refinance
- FHA - Limited Savings
- FHA - Benefits
- FHA - Credit Requirements
- Fannie Mae - 97% LTV
- Family Opportunity Program
- Jumbo - Medical Loan Program
- Luxury Home - 2 Million Max
- Non-Resident Alien Home Loan