Thinking About Purchasing a Home With an FHA Loan??

If you are thinking about purchasing a home with an FHA loan,   do yourself a huge favor and contact a mortgage lender today to run your credit before you start shopping for a home.  As of April 1st, 2012 some things will be changing with regard to FHA Mortgage loans.

If your credit files shows that you have $1000 or more in ongoing credit dispute, the Federal Housing Administration will NOT insure a mortgage for you.  Disputed credit accounts more than 2 yrs old or disputes due to identity theft are not included.

All this is not to say you cannot get an FHA-backed loan as there are a couple of  things you can do to get your loan approved.  You will have to pay the remaining balance of the disputed credit, OR you can set up a documented payment plan and have made 3 payments on the plan.  The documentation can then be submitted to the FHA and will be figured into your debt-to-income ratio for a new mortgage.

Also taking place on April 1st, the FHA mortgage insurance will  be increasing:  a 1.75% upfront fee as well as a 1.2% annual fee paid in monthly installments.

These new rules are being put in place to  protect the FHA’s emergency fund which has fallen below the mandated amount required by Congress.