01-13-2013 07:35 PM
FHA is 12 months
01-13-2013 07:57 PM
It is also 12 months for conventional, however it is up to the underwriter.
You can pass all the guidelines but if the underwriter doesn't feel good about a late in the last 24 months you could still get denied.
01-14-2013 07:12 AM
01-14-2013 07:28 AM
Also, if it is a severe late on a prior mortgage, there could be a longer waiting time. If you go 120 days late on a mortgage, they treat that like a foreclosure even if you didn't go into foreclosure. You could have a 3 year wait until you can do FHA in that case depending on how the manner of payment (MOP) is rated , though some people have reported success earlier.
01-14-2013 08:58 AM
We were approved for a conventional with recent lates (knock on wood, we don't close until April), on my husband's report. His score was still well over 700 so I guess that was good enough for the UW...??
01-14-2013 09:10 AM
01-14-2013 04:30 PM
on this note, what is considered a "safe" credit score for FHA?
There are lenders that will go down to 580 I believe, but I think that it is more difficult to find those. Based on my observations it seems to get a little easier, though still with difficulties, when you are around 620. At 640, substantially easier. I don't think anyone has much difficulty around 650-60. This is just what I have observed reading threads. I've only bought two properties myself, so I don't have that much experience with home buying.
01-14-2013 04:39 PM
I have a 680 middle and I was denied FHA last year and I was putting down 15 percent with reserves.
This will be a better year for me when that late hits 12 months.