Should I apply for FHA ?

[DallasLoanGuy]

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@JonRun wrote:
Dallas, is there a specific rule for FHA loans about lates within the last 12 months? There seems to be conflicting reports. Mine won't be a problem because we are doing new construction and I won't close until November, at which time my last late will be over a year old. Just asking for all the other people on here who have that question.

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if approved thru automated underwriting(computer approval) then no worries. you can have a late last month and still have ZERO problems if the computer says approve.

if this is a manual underwrite, then the lates will have to be explained. <= and it needs to be a darn good explanation on a manual.

[JonRun]

What determines whether you get automated approval or have to go to manual underwriting?

[m29]

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@DallasLoanGuy wrote:

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@m29 wrote:

Not sure you should try just yet! FHA requires no late payments in the last 12 months! Any chance you can try to GW those lates? 

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wrong

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Sorry if I was misinformed Dallas! I closed on my home FHA last month and I was told by my lender that FHA requires no lates in the last 12 months! Is it a lender policy then? I definitely don't want to give any wrong advice!

[Anonymous]

m29,

Your lender might be confused with mortgage lates regarding an FHA streamline refinance. Most lenders will not allow any late mortgage payments during the past 12 months when doing a streamline. There is no reason an FHA purchase can't be approved if there are late payments on other debts (assuming FICO scores are high enough and other factors are met).

[UpmyscoreinFL]

So what is the magic number for automated underwriting and should the brokerbe able tl tell me that?