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To qualify for a FHA loan

Posted on: 11th Jan, 2006 02:13 pm
When I approached a mortgage professional for a FHA loan with my documents and score, he agreed to it but at the time of processing he refused on the grounds that I don't qualify for it as I have an unpaid judgment which is 3 yrs. old. I don't know why he agreed to it and later on refused. Is it true that I can't qualify for a FHA loan because of the reason stated?
Hi Mac,

I think you should shop around more and try with some more lenders to see that if you can qualify. If you don't have any problems with your score, there are possibilities that you may qualify.

Angel
Posted on: 11th Jan, 2006 02:38 pm
Hi Mac,

I think it is true that you have be clear of any judgements to qualifuy for a FHA mortgage. So, may be your lender is correct.

Blackberry
Posted on: 11th Jan, 2006 02:55 pm
He is telling that I can't qualify for a conventional loan even. That means there is no way to qualify for a loan with an unpaid judgment?
Posted on: 11th Jan, 2006 03:11 pm
Hi Mac,

It is difficult to qualify for a fha loan or conventional loan if you have any unpaid judgment. So, it's better to go for different mortgage person and try there.

Most will require the judgment to be paid off but some may allow you qualify. If you still find it difficult then you can opt for sub-prime. Shopping around is required to check whether it is available to you.

James
Posted on: 11th Jan, 2006 03:19 pm
How can I qualify for fha loan?
Posted on: 11th Jan, 2006 03:37 pm
Hi Steve,

There are some basic requirements to be met to qualify for a FHA loan -

  • A credit background is required to show that you meet your obligations.
  • Income should be well enough to pay your debt.
  • Cash for down payment is required.
  • The closing costs need to be paid which is usually 2% to 3 % of the purchase price.
  • Steady employment, preferably with the same lender, for two years
  • The late payment in credit report should not be more than 230 in the last two years.
  • Good credit is required.
  • Mortgage payment is required to be 30 percent of your income.

Kindly post if you have any more doubts.

James
Posted on: 11th Jan, 2006 03:55 pm
What if I had bankruptcy or a foreclosure?
Posted on: 11th Jan, 2006 04:08 pm
Bankrupticies must be at least two years old and for foreclosure, it must be three years old. Since the time a person had a bankruptcy or a foreclosure, good credit is required.

James
Posted on: 11th Jan, 2006 04:30 pm
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