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07-26-2012 06:38 PM
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.
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.
07-27-2012 07:33 AM
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?
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!
07-27-2012 10:48 PM
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).