Bad Credit is OK

Having bad credit no longer means that you cannot get the financing you need, or that you have to accept less than favorable terms. Because the loan is insured by the Federal government, you will get the loan you need, at the terms you want.

  • No minimum credit score – FHA does not have a minimum credit score requirement. The FHA underwriter will evaluate the entire credit profile to determine the borrower’s likelihood of repayment. Past credit issues may be overlooked if new credit has been re-established with on time payments for at least 1 year. Also, other compensating factors may apply.
  • Bankruptcy okay – Chapter 7 bankruptcies are allowed if discharged over 2 years ago (or 1 year with extenuating circumstances). Chapter 13 bankruptcies are allowed with a minimum of 1 year of on time plan repayment and trustee approval.
  • Late payments – Late payments made over one year ago can be ignored if you have been current on your bills for the past 12 months.

Unlike traditional loans, FHA loans do not penalize you for credit issues in the past. You can get the same great terms as everyone else.

Remember, FHA loans never have a prepayment penalty, teaser rates, or interest only payments that can reset and increase you payment. That means that you can qualify for a secure 30 year fixed at a very low rate. Apply now to speak with an FHA specialist who can show you how an FHA loan can work for you.

 

Deciding on an Escrow Account after a Refinance

The monthly mortgage dues of a borrower consist of homeowner’s insurance, private mortgage insurance and property taxes apart from the mortgage principal and interest payments. Lenders require that you pay the insurance amounts and the property taxes in an escrow account held by a third party called escrow services....

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HUD Guidelines for Manufactured Homes

A set of directives prepared by the Department of Housing and Urban Development (HUD) may have served to enhance the quality of manufactured homes. Homebuyers are quite willing to apply for mortgages for this highly affordable quality of housing. Here are the key guiding principles put forward by the...

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