FHA loan requirements FL 2016

FHA loan requirements FL 2016

FHA World - FHA Credit Score Requirements

The Federal Housing Administration insures FHA loans and did not used to require a minimum credit score. The new FHA Policy changes requires a minimum credit score of 580 for 3.5% down payment and anyone purchasing with a score lower than 580 will require 10% down payment. Refinance minimum credit score of 580 for a 97.5% rate and term refinance and 85% cash out refinance. Below 580 down to 500 credit score are allowed with a lower loan-to-value. These changes went into effect in the summer of 2010.

FHA loan requirements FL minimum credit score for a FHA loan is 500.

FHA World  - FHA Credit

FHA announced a set of policy changes to strengthen the FHA. The changes announced are the latest in a series of changes enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.

The FHA has taken the following step:

• Update the combination of credit score and down payments for new borrowers
• New borrowers will now be required to have a minimum credit score of 580 to qualify for FHA's 3.5% down payment program
• New borrowers with less than a 580 credit score will be required to put down at least 10%
• FHA loan requirements FL
  

FHA World - FHA Credit Requirements

FHA credit requirements have changed. For purchase and refinance you will need a minimum of 580 credit score for 3.50% down payment or 97.0% rate and term refinance or 85.0% cash-out refinance. If your credit score is below 580 then a 10.0% down payment is required for a purchase and a maximum of 90% loan-to-value for a rate and term refinance.

FHA loan requirements FL

FHA World - No Credit History

Two lines of credit are necessary to apply for an FHA loan. However, in the event a borrower does not have sufficient credit on their credit report the FHA will allow substitute forms. Rental history of 12 months will be required.

FHA World - Late Payments

During an underwriter analysis of borrower credit, the overall pattern of credit behavior is being reviewed rather than isolated cases of slow payments. If a good payment pattern has been maintained, regardless of a specific period of financial difficulty preceded it, the borrower may escape disqualification.

FHA World - Collection, Judgments, Federal Debts

New the FHA does not require collection accounts to be paid off as a condition of mortgage approval. However, FHA does recognize that collection efforts by the creditor for unpaid collections could affect the borrower’s ability to repay the mortgage.

• If evidence of a payment arrangement is not available, the lender must calculate the monthly payment using 5% of the outstanding balance of each collection, and include the monthly payment in the borrower’s debt-to-income ratio.

 Any judgments will have to be paid in full prior to closing. Borrowers who are delinquent on any federal debt, such as tax liens, student loans, etc., are not eligible.

FHA World - Chapter 7 Bankruptcy

At least two years must have elapsed since the discharge date of the borrower and / or spouse's Chapter 7 Bankruptcy, according to FHA guidelines. This is not to be confused with the bankruptcy filing date. A full explanation will be required with the loan application. In order to qualify for an FHA loan, the borrower must qualify financially, have re-established good credit, and have a stable job.

FHA World - Chapter 13 Bankruptcy

FHA will consider approving a borrower who is still paying on a Chapter 13 Bankruptcy if those payments have been satisfactorily made and verified for a period of one year. The court trustee's written approval will also be needed in order to proceed with the loan. The borrower will have to give a full explanation of the bankruptcy with the loan application and must also have re-established good credit, qualify financially and have good job stability.

FHA World - Foreclosure

FHA insured mortgages are generally not available to borrowers whose property was foreclosed on or given a deed-in-lieu of foreclosure within the previous three years. However, if the foreclosure of the borrower's main residence was the result of extenuating circumstances, an exception may be granted if they have since established good credit. This does not include the inability to sell a home when transferring from one area to another.

FHA loan requirements FL 2016

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