Category: FHA QUESTIONS AND ANSWERS
BANKRUPTCY / FORECLOSURE APPROVALS
BANKRUPTCY / FORECLOSURE APPROVALS BANKRUPTCY / FORECLOSURE CHAPTER 7 – The FHA mortgage applicant may still qualify for a new FHA mortgage after declaring Chapter 7 bankruptcy if at least 24 months have passed since the bankruptcy discharge date. The FHA mortgage applicant must also have re-established proof of timely payment history or have opted to incur…
Can I get an FHA mortgage with bad credit?
Does FHA require a minimum credit score and how is it determined? The FHA mortgage applicants is not eligible for FHA-insured financing if the Minimum Decision Credit Score (middle credit score ) is less than 500. If the middle credit score is between 500 and 579 the FHA mortgage applicants is limited to a maximum…
Can a person have 2 FHA mortgage loans at the same time?
Can a person have 2 FHA mortgage loans? FHA mortgage lenders will not insure more than one Property as a Principal Residence for any FHA mortgage applicant, except as noted below. FHA mortgage lenders will not ensure a Mortgage if it is determined that the transaction was designed to use FHA mortgage insurance as a…
Are copies of tax returns required for FHA mortgage applicants with self-employment or commission income?
Are copies of tax returns required for FHA mortgage applicants with self-employment or commission income? For self-employed FHA mortgage applicants, the lender must obtain complete individual federal income tax returns for the most recent 2 years, including all schedules. The FHA mortgage applicants’s business tax returns for the most recent 2 years must also be…
How to get an FHA mortgage with disputed accounts?
Disputed Credit Derogatory Credit Account refers to disputed charge off accounts, disputed collection accounts, and disputed accounts with late payments in the last 24 months. If the credit report indicates that the FHA mortgage applicant is disputing derogatory credit accounts, the FHA mortgage applicant must provide a letter of explanation and documentation supporting the basis…
How are debts paid by another person considered for an FHA mortgage?
How are debts paid by another person considered for an FHA mortgage? A contingent Liability refers to a liability that may result in the obligation to repay only when a specific event occurs. For example, a contingent liability exists when an individual can be held responsible for the repayment of a debt if another legally…
Do FHA Mortgage Lenders Allow Collections?
Do FHA Mortgage Lenders Allow Collections? A Collection Account refers to an FHA mortgage applicant’s loan or debt that has been submitted to a collection agency by a creditor. If the credit reports used in the analysis show cumulative outstanding collection account balances of $2,000 or greater, the lender must: • verify that the debt…
