FHA Rules | Panama City Beach Real EstatePosted by Jennifer Mackay on Thursday, March 29th, 2012 at 8:14am.
Recently, the FHA (Federal Housing Administration) made an announcement: Starting April 1 FHA will no longer insure mortgages to borrowers who have an ongoing credit dispute of $1,000 or more on their file.
Consideration for an FHA-backed loan, requires borrowers either:
- Have to pay the remaining balance on the credit dispute or
- Enter into a payment plan, making at least three payments on it.
Any payment plans need to be fully documented and submitted to the FHA, to be included in the debt-to-income ratio for the new mortgage.
Excempt from the FHA’s new rule are:
- Disputed credit accounts from more than two years ago or
- Any accounts related to reported identity theft.
According to FHA, the rule is targeted at protecting the FHA’s emergency fund, which is currently below the mandated amount required by Congress.
Welcome to our Panama City real estate blog. Feel free to share your thoughts and insights as comments are always welcome, whether you are a consumer, journalist or another real estate professional. Our blog includes local and relevant national real estate information, Condo and Home market statistics, personal and professional insights and information about various neighborhoods, subdivisions and listings. If you would like additonal information on any of our topics, please use the contact form and I will be glad to assist you.
Be the first to comment on this blog entry!