Anyone got a FHA home loan here on current mortgage or has had one before? Are there any goods or bads on this type of loan? I have heard they don't go by credit score but the last 2 years of credit performance. How about charge offs, is there a maximium they allow? I know these usually have to be settle before closing.
I got an FHA mortgage in September. I had a tax lien and judgement that I had to provide proof of payment for. My husband and I both had 3 collection accounts each that they didn't make us pay or show proof of payment. They were never even mentioned and they show up on all 3 credit reports. The collections were not recent. I'm not sure if they would have made us pay them if they were in the last 2 years. It was a very simple process in all. Good Luck!!
Hey jen, Were the collections small amounts? I am too worry about the collections I have. Well really most are not collections but charge offs dated back 1997/1998. I have about 8 of these from beening a retard in college but they total about 3k all together
I too was a retard in college! They should not make it so easy for college kids to get credit cards. All of our collections/chargeoffs totaled around $2500 with the largest one being $500. The mortgage company we used is National City Mortgage.
I have an FHA loan. I don't see anything negative about it except the PMI, but I have to expect that since I didn't have a large downpayment. They only looked back 2 years and actually let a couple of one year old 30 day lates slide with an excuse. I think they might only look back one year if you don't have a BK. We didn't have any unpaid collections or judgements but I think they usually want those paid. Other than that I don't see any difference from a regular mortgage. Kim
I got our FHA loan in 96 with a chp 7 from 92 on it. We refinanced our loan in 2000 and got conventional even with the chp 7 on it. However my credit was perfect since the discharge so that must have made a difference?
I guess it may not be bad as I thought, most of all my charge offs are about 5-6 yrs old. I guess I will put in an application and find out.
I'm a newbie at the credit clean-up. However, my understanding is the FHA requirement is 4 yrs post BK (I had a BK7 in Apr 97). FHA requires 3% down, which may be rolled into the mortgage if there's enough equity. Mortgage Insurance Premium (MIP) is the kicker... Get below a 80% LTV to avoid this fee !!
I mean that all credit activity I had reported after discharge was positive, no derogatory notations, i.e., it demonstrated I hadn't messed up on my "fresh start". (TL stands for tradeline, a line item representing an account being reported in your credit file.) Unfortunately, for me, that was contrasted by having a lot of my "included in BK" accounts erroneously reported as charge-offs ! I supplied BK docs to the underwriter to document how these were errors. I didn't do much at the time about the errors but began my repair efforts in earnest this spring just before refinancing the same mortgage. Even though everything hasn't been cleaned up yet, I'm making progress and I did close on the re-fi 4/23/03.
I purchased my home with an FHA/HUD loan. The MIP sucks! The kicker is that when they appraise the home that you are purchasing (the appraisal is a joke- it's more like a drive by), they will appraise the house for MAYBE a couple grand above the loan amount. I purchased my home is May of 2002 and my loan amount was like $116,500. My FHA appraisal was for $119,000. My home's appraisal for tax purposes (which is a couple of years old) is $129,000. That's a $10k difference! I need to straighten this out by the way... Also, make sure that you check to make sure that the tax records are correct because they have my 4 bedroom, 2 1/2 bath, LR,DR,FR,Kitchen,2 Car Garage, full basement home as being 1,200 square feet. Your homeowner's policy gets this information from the tax records. Could you imagine if my home burnt down? I would get 1/2 a house rebuilt! Just food for thought....
I got FHA. Signed the papers on March 4, and my first payment was made just a few days ago. Here's a synopsis of my story.
So, does that mean that a person with a score of 620 would get the same rate as a person with a score of 720?
Yep, you guessed it. FHA only looks back one to two years depending on BK or none. Score means nothing to them. The score would come in handy for one thing though. If your score is on the lower end you usually have to go through manual underwriting. A higher score would be approved much quicker. Kim
Yep, there's "stated income" versus "verified income", "documentation" versus none, etc. I pretty much had to go whole hog on documentation because of erroneous info. in my credit files. I was slave to the underwriter for a couple of weeks.
