The main advantage with FHA mortgage lenders is that the credit qualifying criteria for a borrower are not as strict as conventional financing. FHA mortgage lenders may consider a bad credit mortgage applicant to have an acceptable payment history if the bad credit mortgage applicant has made all housing and installment debt payments on time for the previous 12 months prior to closing and has no more than (2)two 30-Day late Mortgage Payments or installment payments in the previous 24 months prior to closing.
|Payment History||12 months||24 months|
|Housing Installment||0 x 30||2 x 30|
|Revolving||2 x 60||0|
Bad credit FHA mortgage lenders may approve the bad credit FHA mortgage applicants with an acceptable payment history if the bad credit FHA mortgage applicants has no major derogatory credit on Revolving Charge Accounts in the previous 12 months prior to closing.
Major derogatory credit on Revolving Charge Accounts must include any payments made
more than 90 Days after the due date, or three or more payments more than 60 Days after the
Payment History Requiring Additional Analysis
If the FHA mortgage applicants credit history does not reflect satisfactory credit as stated above, the FHA mortgage applicants payment history requires additional analysis. FHA mortgage lenders must analyze the FHA mortgage applicants delinquent accounts to determine whether late payments were based on a disregard for financial obligations, an inability to manage debt, or extenuating circumstances. FHA mortgage lenders must document this analysis in the mortgage file. Any explanation or documentation of delinquent accounts must be consistent with other information in the file.
FHA Mortgage Lenders may only override an FHA mortgage applicants denial if the borrower with a credit history not meeting the satisfactory credit history above if the underwriter has documented the delinquency was related to extenuating circumstances.
FHA Mortgage Lenders may grant Approvals to the exception if their was documented extenuating circumstances that were beyond the control of the FHA mortgage applicant, such as a Serious illness or Death of a wage earner. To meet this possibility you must provide documenation that includes death certificate, Doctor bills, Police reports, some other proof of treatment?