FHA BK & late payment rules

[Bigdaddy69]

After all my hard work to get my FICO scores higher than 640 might all be for nothing.

Filed BK 2004 but have late payments from Santander Auto dating back 11 months ago.

Santander Auto is killing me...

I am being told by my lender that to qualify for FHA 18-24 months of on time payments are required after a BK.

I thought it was only 12 months.

Help.

USAA EQ 680 TU 680 Ex 693
Myfico EQ 643 TU 683
Mortgage pull EQ 643 TU 700 EX 647

[MovingForward_2012]

Go talk to a different Broker or LO. See if a different lender will approve you.

[boomhower]

That is not an FHA requirement.  The only FHA requirement is that there are not any late mortgage payments in the preceeding 12 months.  Now your lender can have that requirement but the FHA does not.  Just like the FHA score requirement is a 580 but finding anyone to do a 580 is almost impossible.  As such, having a 30 late in the preceeding 12 months will make it more difficult.  Having a late in the preceeding 12 months with a prior BK is going to be even a harder road.  But it's certainly not impossible.  Your not tied to one lender.  Make some phone calls and see what different lenders policies are.  Give a broker a shot at it.  To many options out there to stay tied to one institution.  (Not in just approval either.  Different lenders can save you a ton of money from the rate to closing costs, it's the biggest purchase you will make so shop it around.)

[DallasLoanGuy]

lates after a b/k are hard to overcome.

you would need SERIOUS compensating factors and one heck of an explanation as to why you were pate so recently

[Bigdaddy69]

I'll shop it around.

[Bigdaddy69]

@DallasLoanGuy, what do you consider serious compensating factors?
Am I **bleep** out of Luck?

[DallasLoanGuy]

• The borrower has successfully demonstrated the ability to pay housing expenses great than or equal to the proposed monthly housing expenses for the new mortgage over the past 12-24 months.
• The borrower makes a large down payment of 10% or higher toward the purchase of the property.
• The borrower has demonstrated an ability to accumulate savings and a conservative attitude toward using credit.
• Previous credit history show that he/she has the ability to devote a greater portion of income to housing expenses.
• The borrower receives documented compensation or income that is not reflected in effective income, but directly affects his/her ability to pay the mortgage. This type of income includes food stamps, and similar public benefits.
• There is only a minimal increase in the borrower’s housing expense.
• The borrower has substantial documented cash reserves (at least three months worth) after closing.
• Substantial non-taxable income.
• Potential for increased earnings as indicated by job training or education in his/her profession. Think doctor in residence, not salesperson.
• The home is being purchased because the primary wage-earner is relocating, and the secondary wage-earner has an established employment history, is expected to return to work, and has reasonable prospects for securing employment in a similar occupation in the new area.

these are compensating factors.

why was the car late?

[Bigdaddy69]

Great news late yesterday.

My file passed automated underwritting and received my pre-approval.

Yeah me..............