Buy a house 2014
Buy a house 2014 - FHA requires a minimum credit score of 530 to qualify for a home buyer loan.
- Minimum 580 credit score 3.5% down payment
- Below 580 credit score 10% down payment
August 15, 2013 - Borrowers with a prior bankruptcy, foreclosure, deed-in-lieu, or short sale may be eligible for an FHA insured loan if the bankruptcy, foreclosure, deed-in-lieu, short sale was the result of a documented extenuating circumstance.
Borrowers may also be eligible for an FHA insured loan on a purchase transaction after 12 months from the completion, discharge, trustee's sale if the borrower meets the requirements for extenuating circumstances Economic Event.
FHA minimum credit score
FHA allows a home buyer to make a down payment of 3.50% and allows the seller to contribute up to 6% of the purchase price for closing costs with a 580 minimum credit score.
First time home buyers with a credit score below 580 must make a minimum 10.0% down payment and allows a seller concession of up to 6% of the
purchase price to pay for closing cost.
Chapter 7 Bankruptcy
At least two years must have elapsed since the discharge date of the borrower and / or spouse's Chapter 7 Bankruptcy, according to FHA guidelines.
Chapter 13 Bankruptcy
FHA will consider approving a borrower who is still paying on a Chapter 13 Bankruptcy if those payments have been satisfactorily made and verified for a period of one year. The court trustee's written approval will also be needed in order to proceed with the loan.
Foreclosure must have been resolved for at least 3 years with no late payments since the date of resolution. Minimum credit score of 530.
Seasoning Requirements are determined by the type of loan:
- Government loan. Seasoning is determined by the date the claim was paid
- Loans other than Government. Seasoning is determined by the date of sale the lender sold the property
FHA requires a minimum of three years from the date of sale. FHA guidelines requires three year past from the date of sale of the property. Documentation of sale date will be required.
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Mortgage World Home Loans is an online mortgage company specializing in FHA loans for first time home buyers. To buy a house 2014 with 3.5% down payment and a minimum credit score of 580 using an FHA loan, apply online .