A. Your credit is an important consideration for determining your creditworthiness. Information in your credit report is prepared by a credit bureau or consumer reporting agency. Any late payments or other adverse information contained in your credit report will receive additional review during the underwriting of your loan application, and may require further written explanation(s) or documentation from you as we consider your loan request.
A. The FHA is generally more flexible than conventional lenders in its qualifying guidelines. In fact, the FHA allows you to re-establish credit if:
* two years have passed since a bankruptcy has been discharged
* all judgments have been paid
* any outstanding tax liens have been satisfied or appropriate arrangements have been made to establish a repayment plan with the IRS or state Department of Revenue
* three years have passed since a foreclosure or a deed-in-lieu has been resolved