FHA isn't as score-centric as other loan programs. One of the things we will look at is the recent credit history. If there is a bankrupcty within the last four years, will look for a good explanation. When my shop does FHA, we run the file through automated underwriting. If we get an approval from the system, then it's good to go. If not, then it's a "refer" file and we have to build a strong case with letters of explanation, as well as a good cover letter explaining what factors are present which the automated underwriting system doesn't see. 580 can, however, get you 100% financing with a subprime mortgage program.
Thanks. Filed Bk in 2002 due to serious illness. Other than a couple inaccuracies on the credit report that I am disputing through CSC Mortgage Services (a couple debts that were included in the bk are being reported as active and open collection accounts. I supplied all my bk papers to the mortgage loan originator, so I'm not too worried about that), nothing late. I did supply a letter of explanation, etc., but I did not get immediate approved. Got the "refer" that you mentioned. Do you think there's still a chance? If not, what are some of the subprime programs you mentioned? The loan that I applied for was 4.99% fixed 30 yr. for new construction.
