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.
FHA is 12 months
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.
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.
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...??
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.
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.