FHA Medical Collections
FHA medical collections
starting in April 2012 FHA has changed it's collection account guidelines including medical collections. Going forward all collection accounts within the last two years must be paid off. All collection accounts totaling over $1,000.00 must be paid off. Collection accounts that total less than $1,000.00 and are over two years old may not have to be paid off.
If you have medical collections within the last two years starting April 4, 2012 they must be paid off to qualify for a FHA loan. Medical collections that are over two years old and do not total more that $1,000.00 may not have to be paid off.
New FHA Guidelines
allows a borrower with a credit score of 580 to buy a home with only a 3.5% down payment. FHA guidelines allows a borrower with a minimum credit score of 580 to buy a home using their own funds for a down payment or the down payment funds can be a gift from a family member.
FHA guidelines allows a home buyer with a minimum credit score of 580 up to a 6% seller's concession. The seller's concession must be written into the sales contract.
2012 FHA guidelines requires a minimum credit score of 530 for all loans.
Home buyers with a credit score below 580 are required to make a 10% down payment. The down payment funds must belong to the borrower. No gift funds are allowed and no seller's concessions are allowed.
New FHA Guidelines
2012 FHA refinance
Home owners with a credit score above 580 can refinance up to a 97.75% loan-to-value. FHA guidelines allows up to 85% loan-to-value for a cash out refinance. Closing cost can be rolled into the new loan amount.
Home owners with a credit scores below 580 new FHA changes require a maximum loan-to-value of 90% for a rate and term refinance. And up to 75% cash out refinance with credit scores below 580.
Whether you're planing to buy your first home, refinance, lower your monthly payments, buy a second home, consolidate debt or get pre-approved for a mortgage. A perfect credit score is not needed for an FHA loan approval.
In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a for a conventional loan. Credit scores down to 530 are accepted if there are compensating factors that offset the credit risk.
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