FLORIDA FHA MORTGAGE CREDIT REQUIREMENTS
What Florida FHA Mortgage Lenders Want to See When They Review Your Credit
Before approving an FHA mortgage loan, Florida FHA mortgage lenders analyze the integrity of the mortgage applicants past credit performance. Based on FHA requirements, those who have a good credit history demonstrated by a solid track record of timely payments will likely be eligible for a loan. A potential borrower whose recent credit history shows 30 day late payments, judgments and recent delinquent accounts is not a good candidate for loan approval. Below you will find some common FHA mortgage lender concerns
CHAPTER 13 BANKRUPTCY– FHA will consider approving a Florida FHA mortgage applicants who are currently paying on a Chapter 13 Bankruptcy if those payments have been satisfactorily made and verified for a period of 12 months or more. Florida FHA mortgage lenders require approval from court trustees. In addition he borrower will have to give a full explanation of the bankruptcy with the FHA mortgage application.
CHAPTER 7 BANKRUPTCY- Florida mortgage applicants must wait a full (2) two years since the chapter discharge date, this is not to be confused with the bankruptcy filing date. FHA mortgage applicants are required to provide full explanation of what happened to cause the bankruptcy and why these circumstances will not happen again.
LATE PAYMENTS- During the FHA approval process the underwriter will review the overall most recent 24 months of credit behavior rather than isolated cases of slow payments. If a good payment pattern has been maintained for the most recent 12 months regardless of a specific period of financial difficulty preceded it, Florida mortgage applicants have a very good chance for FHA mortgage approval.
FORECLOSURE- FHA insured mortgages are generally not available to Florida FHA mortgage applicants whose property was foreclosed on or given a deed-in-lieu of foreclosure within the previous (3) three years. You miight try out one of our Bad credit Florida mortgage or Hard money Florida mortgage programs.
SHORT SALE- Florida mortgage applicants that were on time with their mortgage payments at the time of the short sale will immediate qualify for an FHA mortgage after the short sale. However those that were late on their mortgage payments at the time of the short sale must wait a full 3 years from the time the deed was transferred to qualify for an FHA mortgage. However, you may qualify with our Bad credit Florida mortgage or Hard money Florida mortgage programs.
COLLECTIONS- A collection is minor in nature usually does not need to be paid off as a condition for FHA mortgage approval if the collection is under $15000. However, most Florida FHA mortgage lenders require apartment complex collections or housing collections be settled or paid in full before closing.
JUDGEMENTS AND FEDERAL DEBTS- All judgments and Federal debt obligations must be paid in full or the borrower must provide a 12 month repayment plan history to qualify for an FHA Mortgage.