Thomas Martin Staff asked 4 years ago
Am I eligible for an FHA mortgage if I’m enroled in consumer credit counseling?
Participating in a consumer credit counseling program does not disqualify an FHA mortgage applicant from obtaining an FHA-insured mortgage loan.
For manually underwritten loans FHA mortgage lenders
must document that:
• one year or 12 months of the pay-out period has elapsed under the consumer credit repayment plan;
• the FHA mortgage applicant’s payment performance has been satisfactory and all required payments have been made on time with NO 30 day late payments; and
• the FHA mortgage applicant has received written permission from the counseling agency to enter into the FHA mortgage transaction.
• one year or 12 months of the pay-out period has elapsed under the consumer credit repayment plan;
• the FHA mortgage applicant’s payment performance has been satisfactory and all required payments have been made on time with NO 30 day late payments; and
• the FHA mortgage applicant has received written permission from the counseling agency to enter into the FHA mortgage transaction.
When processing an application through TOTAL Scorecard, participation in a consumer credit counseling program does not require a downgrade to manual underwriting and no explanation or other documentation is needed.
For additional information see Handbook 4000.1 https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
