Now Harder to Qualify For A FHA Loan

Buying a home is never an easy decision but now, things may have become more difficult. The FHA has changed guidelines that govern how you qualify for a loan which willangry_shout add collection accounts and judgments to your debt to income ratio which took effect on OCT 15, 2013.

If you have more than $2000 in collection accounts a lender is now required to take those debts into consideration because you are considered to be more at risk of not making your mortgage payment if you have to pay those debts. This will make it increasingly more difficult for individuals to secure loans for the purchase of property that have had a hiccup or two in the past. It happens to us all and it has happened to me as well. Although you make every effort to pay your bills on time life sometimes throws you lemons and you just have to make lemonade. Luckily, I have many programs to help home buyers secure the home of their dreams without needing to qualify for a conventional loan.

It is important to note that judgments need to be paid off in order to qualify for an FHA loan but collection accounts do not. There are exceptions to this if a payment schedule has been arranged.

If you are going to try and secure an FHA mortgage the key is to get your debts under control. It’s not easy to do and takes time but it can be done. I am speaking from experience here. I had quite a bit of debt myself with many accounts that were charged-off but after a few years of paying and working with creditors I was able to clean up all that bad history. You don’t have to wait years to buy a house though. Start reaching out to those creditors and see if there is any way they can work with you to take care of those debts if you are looking to secure a home loan. If you want more information on how you can qualify for a home without conventional financing feel free to contact us and we can discuss those options with you. Everyone deserves a second chance, let us help you get yours!

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