FHA

Credit Requirements

Essentials
– Minimum credit score of 580 for all borrowers
– All loans must be underwritten by Fannie Mae or Freddie Mac’s automated underwriting system
– Any derogatory credit history will require additional underwriting review
– Mortgage rating must not reflect any derogatory history in the last 12 months
– Credit report for non-borrowing spouse must be pulled in community property states with any debt included in qualifying ratio

Derogatory Credit Seasoning

Derogatory Event

Guideline

Bankruptcy — Chapter 7

2 years from discharge date

Bankruptcy — Chapter 13

2 years from discharge date

Foreclosure

3 years from discharge date

Deed-in-Lieu of Foreclosure

3 years from discharge date

Pre-foreclosure / Short Sale

3 years from discharge date

Current at time of Short sale

3 years from discharge date

Consumer Credit Counseling

Per automated underwriting findings

Collection Accounts

Per automated underwriting findings

Charge off

Per automated underwriting findings

Judgment

Must be paid or provide evidence of an established repayment plan