My Grandfather and I recently modified an existing mortgage in October 2010, for a property in Miami (currently living in Canada since 2005). My dad had been covering the payments since I left but lost his job and could no longer make the payments. We were 120 days past due as of September 2010 but current since, it was a joint mortgage with my grandfather. And the only reason we went past due is because our Lender said, we couldn't modify our loan because we hadn't missed any payments, so we began to miss payments until we qualified.
I was told there is a hard rule that if you've been delinquent more than once in the last 12 months (for FHA) you would be denied.
We are selling that property (to my
father, who now has a great job and credit) and I am being relocated to Michigan from Canada by my company with a promotion, and hope to buy a new property.
If all other things are satisfactory (i.e. downpayment 65k on a 250k house (financing 185k, 26% down), credit score 718, 73k / year salary, mortgage-to-income ratio 24.7%, debt-to-income ratio 34.2%, 5years employed with company)
If my last delinquent month (on the Miami property with my grandfather) was September 2010 at 120 past due, when would I no loger be denied? Is the delinquency rule in the last 12 months are hard line in the sand rule? Would I be denied for a pre-approval based on that as well?
- April 06 2011 - Farmington Hills