Regarding credit, what is actually required to obtain an FHA loan? My husband had an auto repossession that was making it difficult for us to get an FHA loan, but he just got it paid off this week. Now our broker is telling us that FHA won't accept any open collections on his credit record. Does that make any sense to you at all?? Isn't FHA first time home buyer programs for people with low income or poor credit??
2006-10-13 11:51:16 · 3 answers · asked by CE S 3 in Business & Finance ➔ Credit
I just wanted to add, that per the FHA website, a person who's filed bankruptcy can obtain a loan, so it makes no sense to me that someone with about $1,000 in open collections can not get one.
2006-10-13 11:55:24 · update #1
No, FHA is for first time Home buyers that have not bought a home before, It has nothing to do with low income. There are some programs out there for low income though. If your broker doesn't know them then maybe you should see another one. You shoulsd alway see at least 3 and compare what they can do for you before you go with one.
If your credit is too messed up then only time will heal it. DO NOT give into these scams that say they can fix your credit. No one can but you. You can try and get the repo people to remove the mark on your credit scaore but it's a long shot. You may be better off waiting a year or 2 till your score is better before you buy rather than get a sublime loan (higher interest for bad scores)
2006-10-13 11:58:21 · answer #1 · answered by nooodle_ninja 4 · 0⤊ 0⤋
Yes, but even the FHA has underwriting and approval criteria. It does make sense. Even though the debts been paid, it's a recent debt. FHA isn't different than any other lender in that borrowers need to demonstrate financial responsibility. FHA isn't necessarily for first time home buyers. They do have products for low income and poor credit applicants, but they aren't going to just give their money away.
You can still get a loan with another lender, but the auto repo will mean that you'll pay much higher fees and a higher interest rate.
2006-10-13 11:55:55 · answer #2 · answered by Le_Roche 6 · 0⤊ 0⤋
FHA loans are design for the people with low income and non sufficient credit history. others underwriting guidelines will apply. all charge off accounts need to be paid off. if your income qualify you for FHA loan- you can get the loan from different lender. you can be even better off ,then with FHA, because if you put less then 20% down payment- you don't have to pay PMI.
2006-10-13 19:08:27 · answer #3 · answered by bianca 4 · 0⤊ 0⤋
well, if its paid off, give them the reciept to show, maybe they might give it a second thought
2006-10-13 14:17:39 · answer #4 · answered by butterfly_kisses81501 3 · 0⤊ 0⤋