FHA Question

[nicemann]

Ok I appolgize if I missed this but I tried searching the forums and didn't see an answer.....On FHA is it true if you have a certain credit score you can be "FHA Auto Approved?'  That the FHA will not even have to look at your credit report?  I see a couple of websites talking about it but not too much information when I google it.  I was wondering if with my scores if I could be auto approved instead of having them question collections from about 6 1/2 years ago.

Thank you

[Anonymous]

FHA isn't score driven - it is TL driven (min 4-5 TLs), no baddies the last 12 months, a collection may trigger a manual (unpaid).  Score is important for getting insurance though  - so if you are clena for the past 12 (better 24) thenyou could get an auto approval which would probably require less documentation than a manual (and less 'splaining any negs.)

[nicemann]

Nothing bad on my report for the last 4 years.  Still have a couple of unpaid collections but they are 6+ years old.  Hopefully won't have to do a manual review.  Guess I better think of a better response then "I was young and stupid"

[happy0510]

You only have 6 months to go till they fall off! Don't fret! Why aren't you waiting till then?

[nicemann]

Lease is up on my apartment and there are some really good deals out there I can jump on.  Figured if I could get approved now with FHA then I could always refi in a year or so.

[ShanetheMortgageMan]

I wouldn't ever figure you could refinance "later on", that is a plan waiting to go wrong.  Lenders guidelines are getting tighter & tighter, so if you think it's hard to qualify for a loan today - wait 6 months and see how hard it will be then.  The loan that you purchase your home with should be the loan that you would be comfortable being in for quite some time.  If it's not, then wait until your situation improves to where you can qualify for a loan that you would be comfortable to be in for awhile.  There is no magic score that determines if one can get approved through automated underwriting or not, it's a combination of credit score, what's on credit, debt to income ratio, down payment, and reserves/assets - a comprehensive analysis of one's situation.