FHA Rules | Panama City Beach Real Estate

Posted by Jennifer Mackay - Owner on Thursday, March 29th, 2012 at 8:14am.

panama city beach real estateLatest FHA (Federal Housing Authority) update...

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.

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