Mortgage Loans

[Tnblue13]

Ok, I've been reading and reading and reading :0) now I'm confused. For FHA and/or Conventional is it no lates for 12 or 24 months...please and thank you.

[jordanmedical]

FHA is 12 months

[tooleman694]

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.

[JM-AM]

You would have to speak to the LO or Broker you want to use.

They will tell you the requirements needed

For example I have a lender that allows 1 late under 60 days and caught up before applying.

[Walt_K]

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. 

http://ficoforums.myfico.com/t5/Mortgage-Loans/Effect-of-multiple-120-lates/m-p/935040#M77379

[violetsmom]

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...??

[MovingForward_2012]

Yep if your score is high enough, you may be able to get away with a recent late or unpaid collection.

[basballguy]

on this note, what is considered a "safe" credit score for FHA?

[Walt_K]

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basballguy wrote:

on this note, what is considered a "safe" credit score for FHA?

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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.

[tooleman694]

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.