Judgments - FHA does require them to be paid in full or meet the exception guidance for judgments, unless excluded by state law.
An exception to the payoff of a court-ordered judgment may be made if the borrower has an payment agreement with the creditor to make regular and timely payments for three months.
A copy of the agreement must be provided along with evidence that payments were made on time in accordance with the agreement, and a minimum of three months payments have been made prior to credit approval.
Borrowers are not allowed to prepay scheduled payments in order to meet the required minimum of three monthly payments.
The payment amount must be included in the calculation of the borrower’s debt-to-income ratio.
FHA has changed the minimum credit score for new borrowers:
Debt-to-income ratio - April 1, 2013 FHA requirements include a maximum debt to income ratio. When a borrower applies for an FHA mortgage, they are required to disclose all debts, open lines of credit, and all possible approved sources of regular income. Using this data, the lender and FHA can calculate the borrower's debt-to-income ratio.
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.
Whether you're planing to buy your first home, refinance to lower your monthly payments or refinance to take cash out.
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Oct 18, 21 08:37 AM
FHA cash out refinance allows you to refinance up to 80% of the value of the property with a minimum credit score of 500. Use the equity you have built up in your home to cash out with an FHA loan.
Oct 12, 21 08:29 AM
FHA construction to permanent loan. Do you want one loan to buy the land, build a new home with a construction loan and then have the loan convert to a permanent loan with only 3.5% down?
Oct 11, 21 08:00 AM
Refinance to take cash out, divorce, payoff debt or home improvements with a 500 minimum credit score. FHA refinance allows cash out amount up to 80% of the value of the property.