Friday, February 08, 2008

Parameters for FHA Eligibility

Parameters for FHA Eligibility Based on Buyer’s Credit History

Foreclosure: Three years need to have passed since foreclosure; the date is established when recorded with the county.

Bankruptcy:

Chapter 7: Two years since Chapter 7 was discharged. Less than 2 years but not less than 12 months if the bankruptcy was the result of extenuating circumstances.

Chapter 13: One year of the payout period under bankruptcy has elapsed and the borrowers payment performance has been satisfactory. Borrower must receive permission from the court to enter into the mortgage transaction.

Consumer Credit Counseling: One year of the payout period under counseling has elapsed and the borrowers payment performance has been satisfactory. Borrower must receive permission from the counseling agency to enter into the mortgage transaction.

Collections & Judgments: Court ordered judgments must be paid off before loan is eligible for FHS

COLLECTIONS—FHA doesn’t require that collection accounts be paid off as a condition of mortgage approval.

Used with permission from Tony Stevenson, Tucker Mortgage.

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