How does credit affect eligibility and FHA Loan Qualifications?
December 15th, 2008
In most cases, FHA home loans are more flexible than conforming mortgage lenders regarding credit qualifications and home equity requirements for purchasing or refinancing. In fact, FHA loan guidelines enable borrowers with bad credit scores to re-establish their credit:
- Must be at least 2 years since the bankruptcy was discharged
- All judgments must have already been paid
- Tax liens must been satisfied or appropriate arrangements
- Must be at least 3 years foreclosure or a deed-in-lieu has been resolved
