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 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 |