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Can I qualify for FHA loan with late payments?

I have a question regarding FHA loan requirements. My wife and I had some late payments earlier in the year, in the March timeframe due to serious financial distress because of an ongoing chronic illness. Is it possible to get an FHA mortgage despite those late payments? At one point we were in foreclosure but were able to work our way out of it and have been current ever since. Is it possible to get any mortgage with this on our credit reports? Is there any mortgage company or bank that can get past the credit reports due to real uncontrollable circumstances? I was told FHA required 12 months of ontime payments to qualify. I'm not interested in sub-prime.

larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Crohnie,

Welcome to the forum.

FHA loans are the easiest type of home loan to qualify for. The FHA offers most flexible guidelines for loan qualification.

To qualify for an FHA loan, a borrower should have less than 230 days late payment in last two years. But it does not require 12 months of on time payments as a qualifying factor.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:33 | Post subject:

jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello Crohnie,

Are you thinking of an FHA Secure Mortgage?

If you are late on your mortgage due to recent adjustment in the rate of adjustable rate mortgage only then you are eligible for this.

If you are current, FHA's Standard Refinancing option might help you. Lenders are also allowed to offer [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] to homeowners who are current but owe more than the value of their property. But in both the cases the credit history matters and I am afraid your late payments might stop you from that.

It will be better if you take out your credit report first and then approach the lenders.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:33 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

how do you find out about fha lenders? Who are they?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:33 | Post subject:

livinginnky's picture
livinginnky | Joined: September 8, 2007 08:31 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

You are correct FHA does require 12 months of on time payments, among other things. It is always worth a try however as they do have a unique way of handling extreme circumstances.

Be prepared to do a lot of explaining however. This can be frustating for most people. You will have to do a lot of work before you know if it is going to happen or not.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:33 | Post subject:

ezmortgageloanz's picture
ezmortgageloanz | Joined: April 6, 2007 10:25 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

It is still possible to secure a FHA loan even if you have had late mortgage payments in the last 12 months---manually underwritten FHA loans allow for this and usually compensate with a reduced LTV allowance.

Regards,

Scott Miller

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:33 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Does anyone know of any lender who can manually input a FHA loan application and what are the loan limits for Indiana? Looking for $230K on a $300k home. Is that possible with FHA?

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livinginnky's picture
livinginnky | Joined: September 8, 2007 08:31 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Any lender that can do FHA should be able to submit it to manual underwriting. Direct lenders ususally have their own and brokers go through approved wholesale departments.

Unfortunately I believe the max amount is $200,160

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evolovik26's picture
evolovik26 | Joined: August 15, 2007 11:43 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Just looked up indiana and it seems less then 200k I'll check more specifically later on today. (dont get discouraged they are looking to raise the limits)
keep your credit from bad things and there should be a way to do this for you.
To pat, most major banks are FHA lenders and there are a few brokers out there that are FHA approved although not everybody does manual underwriting.

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livinginnky's picture
livinginnky | Joined: September 8, 2007 08:31 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

[quote:0d55cbb9c4]Just looked up indiana and it seems less then 200k [/quote:0d55cbb9c4]

Where did you find this? I can't seem to find the link on fha.gov anymore. I got my number from a random website.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:33 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Crohnie, [color=Red:1e049b57e7]Edited per forum rules....Do not solicit[/color:1e049b57e7]

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am in Kosc. County.

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evolovik26's picture
evolovik26 | Joined: August 15, 2007 11:43 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Erick was right for a one unit property the limit in your county is 200,160 max loan ammount so if you want more then that you have to get a conventional loan.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:33 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Is it possible to secure an FHA for the bulk of the funds ($200160.00) and then a 2nd mortgage for the balance? And typically what alternatives are then other than FHA and Sub-Prime?

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Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Cronie,

Considering your situation, I feel you can get an FHA loan for the bulk fo the funds but nothing is for sure until and unless you get to know it from the lender you're dealing with. You need to shop around with some lenders and try to find out if such a loan amount is available. And, yes, there may be other options which you need to discuss with the lender himself. But to me, FHA seems to be the best as you can get it even at bad credit. However, the FHA loan limit is important here.

Hope this helps...

God bless you.

Samantha

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:33 | Post subject:

evolovik26's picture
evolovik26 | Joined: August 15, 2007 11:43 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I believe that you would have a tough time finding a second to go behind FHA. The reason you can get FHA is because its government insured loan and banks dont carry any risk in giving it to you. Your local credit union might give you a second loan like that but i bet you need to have a good/long standing relationship with them. Come to think of it i am not a 100% sure whether FHA requirements allow for that but i dont see how this would be a problem seeing as you did mention that you will be putting 20% down. Might even qualify for a conventional second if your credit is not too bad.

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lisa.scherzer's picture
lisa.scherzer | Joined: January 4, 2008 08:48 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

I would work on keeping up with the mortgage payments until you have 12 months on time payments and then apply for an FHA loan.

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