FHA Mortgage Guidelines 2016

FHA mortgage guidelines 2016 - Borrowers with a prior bankruptcy, foreclosure, deed-in-lieu, or short sale may be eligible for an FHA insured loan if the bankruptcy, foreclosure, deed-in-lieu, short sale was the result of a documented extenuating circumstance.

Borrowers may also be eligible for an FHA insured loan on a purchase transaction after 12 months from the completion, discharge, trustee's sale if the borrower meets the requirements for extenuating circumstances Economic Event.

FHA minimum credit score

FHA allows a home buyer to make a down payment of 3.50% and allows the seller to contribute up to 6% of the purchase price for closing costs with a 580 minimum credit score.

First time home buyers with a credit score below 580 must make a minimum 10.0% down payment and allows a seller concession of up to 6% of the purchase price to pay for closing cost.

FHA requires a minimum credit score of 500 to qualify for a home buyer loan.

• Minimum 580 credit score 3.5% down payment
• Below 580 credit score 10% down payment
  
• There are no trade line requirements
  
• Collection accounts do not have to be paid off
• Any disputed accounts must be resolved

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.

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.

Foreclosure

Foreclosure must have been resolved for at least 3 years with no late payments since the date of resolution. Minimum credit score of 500.

Seasoning Requirements are determined by the type of loan:

• Government loan: seasoning is determined by the date the claim was paid
• Loans other than Government: seasoning is determined by the date of sale the lender sold the property

Short Sale

FHA requires a minimum of three years from the date of sale. FHA guidelines requires three year past from the date of sale of the property. Documentation of sale date will be required.

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Mortgage World Home Loans is an online mortgage company specializing in FHA loans for first time home buyers. To buy a house  with 3.5% down payment and a minimum credit score of 580 using an FHA loan, apply online.

We look forward to working with you.

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