FHA Loans for Homebuyers
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FHA Refinancing
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Need to Know
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FHA Programs for Homebuyers
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FHA and Credit Issues
FHA Wants You To Qualify
Your credit history does not have to deter your FHA loan approval. FHA will analyze your credit history
to determine your eligibility for the FHA loan you seek. If you have made timely payments in the past,
you are demonstrating your willingness to repay future credit obligations. However, if your
credit history shows continual slow payments, judgments and delinquencies, you may not be a
good candidate for FHA loan approval.
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Now is the time for an
FHA HOME LOAN
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FHA uses many criteria in evaluating a borrower's credit. Before you apply for your FHA loan, make sure your
credit history shows these to be stellar. If not, wait and raise your credit score by correcting some of
your past mistakes.
Late Payments
FHA will review your overall pattern of credit behavior. A short period of financial difficulty does not
disqualify you from getting an FHA loan if a good payment pattern has been maintained since then.
No Credit History
In the event a borrower does not have any credit lines (2 are needed) on the credit report, the FHA will allow
substitute forms of credit such as utility payment records, rental payments, car insurance payments, etc.
Bankruptcy - Chapter 7
FHA guidelines state that a minimum of two years must elapse since the discharge date of the borrower and/or
spouse's Chapter 7 bankruptcy, not the filing date. A full explanation of the bankruptcy will be required. You
must also have re-established good credit, qualify financially and have job stability.
Bankruptcy - Chapter 13
FHA guidelines consider a borrower still paying on a Chapter 13 Bankruptcy if the payments to the court
have been satisfactorily made and verified for a period of one year. In addition, the court trustee will
need to give written approval. A full explanation of the bankruptcy will be required. The borrower must
also have re-established good credit, qualify financially and have job stability.
Collections, Judgments, Federal Debts
HUD guidelines state that if a collection is minor in nature, it usually does not need to be paid off as a
condition for loan approval. Judgments must be paid in full prior to closing. A borrower is not eligible for
an FHA loan if they are delinquent on any federal debt. This can include tax liens, student loans, etc.
Payment arrangements that would bring the borrower up to date may be helpful in securing an FHA loan approval.
Foreclosures
Generally, you are not eligible for an FHA loan if your previous residence or other real property was foreclosed upon,
or given a deed-in-lieu of foreclosure, within the previous three years.
However, if the foreclosure of your primary residence was the result of extenuating circumstances beyond your control,
and you have since established good credit, FHA may allow for an exception. This does not include the inability to
sell a home when transferring from one area to another.
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to Buying a Home with an FHA Loan
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> FHA Step 1
How much can you afford?
> FHA Step 2
FHA says, "Know your rights."
> FHA Step 3
Shop for an FHA loan.
> FHA Step 4
Shop for a place to call home.
> FHA Step 5
Make an offer for the home.
> FHA Step 6
Get a home inspection.
> FHA Step 7
Your homeowners insurance.
> FHA Step 8
Sign on the dotted line and move in.
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Receive cash back and save money when you buy or sell your home.
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Get a VA loan to buy a home, to build a home, to refinance your mortgage, or to simultaneously purchase and improve a home.
VA Mortgage News
Browse through articles about
VA home loan programs,
VA benefits, home buying and selling,
VA mortgage shopping
and insurance.
Pioneer Military Loans
Serving the military community with personal loans from $500 to $10k.
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