...agray0706 ...I was actually looking for a reply from the prior poster
...its a crazy mortgage world ...you probably could have easily qualified for a no-credit-check streamline refinance on the house you sold ...nutz!
@Anonymous wrote:FWIW, I am going through the process of an FHA Loan right now. My mid score was 616, I have 3.5% down & 3 months PITI in cash reserves. I had a 30 day late in Oct 2014 on a Credit One account and a 30 Day late in Nov 2014 on a First Premier card for the monthly fee (I thought the card was closed). I was approved by DU as approved/eligible. got 3.75% interest rate. Last week the loan was finally assigned a loan processor (after a long wait for the appraisal report) and I should be headed to underwriting this week.
My understanding is that the 12 months of no lates on credit cards / installment loans is a lender overlay. That FHA only requires no lates on mortgages or federal loans (someone please correct me if that's wrong). Obviously YMMV but the best of luck to you! There ARE lenders who will finance you with lates with a letter of explaniation.
...that is wrong ...read the OPs post ...multiple installation loan lates as recently as March 2015
FHA Single Family Housing Policy
Handbook, issued on March 18, 2015
Handbook 4000.1 204
II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
A. Title II Insured Housing Programs Forward Mortgages
5. Manual Underwriting of the Borrower
a. General Requirements
iii. Evaliuating Credit History (Manual)
(1) Satisfactory Credit
The underwriter may consider a Borrower to have an acceptable payment history
if the Borrower has made all housing and installment debt payments on time for
the previous 12 months and has no more than two 30-Day late Mortgage
Payments or installment payments in the previous 24 months.
The underwriter may approve the Borrower with an acceptable payment history if
the Borrower has no major derogatory credit on revolving accounts in the
previous 12 months.
Major derogatory credit on revolving accounts must include any payments made
more than 90 Days after the due date, or three or more payments more than 60
Days after the due date.
(2) Payment History Requiring Additional Analysis
If a Borrower’s credit history does not reflect satisfactory credit as stated above,
the Borrower’s payment history requires additional analysis.
The Mortgagee must analyze the Borrower’s delinquent accounts to determine
whether late payments were based on a disregard for financial obligations, an
inability to manage debt, or extenuating circumstances. The Mortgagee must
document this analysis in the mortgage file. Any explanation or documentation of
delinquent accounts must be consistent with other information in the file.
The underwriter may only approve a Borrower with a credit history not meeting
the satisfactory credit history above if the underwriter has documented the
delinquency was related to extenuating circumstances.
...sorry op ...I wish the pps were correct but afaik my original answer stands ...unless you can document Underwriter acceptable extenuating circumstances which your original post did not reflect, you may be stuck ...the 12 months late rule has nothing to do with lender overlays ...its a published HUD guideline that all FHA mortgage lenders must follow ...and its why your original lender was cornered when he finally woke up ...hth
...note to self ...put this in a damn macro so you don't have to look it up again and again and again and again 
...yes, but the cited sections are long standing and are not changing
...I don't believe the op has any chance of making it through automated ...and the 3/15 auto loan lates w/o uw acceptable LOE will kill any manual approval for another 10 mts
...that said, I'm just following the HUD guidelines ...shane/dallas/dpeezy are the mortgage loan pros here and may have a better answer ...just don't want to get the ops hopes up when I don't see a way around the problem he presented.