2022 FHA Credit Disputes Guidelines during your mortgage process require that all non-medical collection accounts with outstanding balances $2,000 or greater need to be retracted prior to submitting your mortgage application and approval. With the enormous popularity of FHA Loans and them being the most popular in the country by a wide margin given the more relaxed and lenient guidelines, it is no wonder why all their products are in such high demand. FHA has made its mark by being popular amongst first-time homebuyers and also borrowers with credit issues and negative credit history. FHA is known as the place to go for a loan if you have bad credit and high debt to income ratios given their more lenient lending requirements. As another rule, FHA does not require you to pay off outstanding collection accounts and you can get approved for a loan without having to pay off outstanding collection accounts and charge off accounts without settling. Given these areas of leniency, the 2022 FHA Credit Disputes Guidelines will show you how to get through these issues.
2022 FHA Credit Disputes Guidelines allow for some credit disputes to be exempt. You are allowed to have credit disputes on medical collection accounts with outstanding balances and also credit disputes on non-medical accounts that have zero dollar balances. If you have credit disputes under $1,000 2022 FHA Credit Disputes Guidelines allow for these accounts to be exempt as well. What it comes down to is items on your credit report for collection accounts is under $1,000 you don’t have to worry about these. FHA exempts medical collection and charge offs from debt to income ratios, but you cannot have credit disputes on your charge-off accounts. All credit disputes need to be removed in order to proceed with an FHA loan.
Collection accounts are also an important part of the approval process for the 2022 FHA Credit Disputes Guidelines. If you have medical collection accounts and charge-off accounts, you can rest easy knowing that these amounts are exempt from your debt-to-income calculations. However, for non-medical collection or charge-off accounts, if the balance is more than $2,000 in total, 5% of the outstanding balance will be calculated against your debt to income ratio. If you have $6,000 in outstanding non-medical collection accounts, be prepared for 5% or $300 be included in your debt to income ratio. You may wonder why it is included even if you aren’t currently paying on them, but underwriters do this to be on the safe side should you need to start paying on them in the future.
As you navigate the 2022 FHA Credit Disputes Guidelines you need to work with an experienced loan originator who can help you from the beginning in providing you a confident pre-approval letter. If you have a proper loan originator like myself, they will go through your entire financial history to ensure your credit history and credit report is researched as well as tax returns, W2’s, and bank statements. Many loan officers won’t do their homework and just issue a pre-approval and when it comes down to it you aren’t approved for the loan because the loan originator didn’t take a good look at your documentation and creditworthiness. As FHA goes, if you abide by the 2022 FHA Credit Disputes Guidelines, have a minimum FICO credit score of 580, you can get approved for a 3.5% down payment loan. If you have been denied in the past, make sure you come to Loan Consultants and get approved TODAY! Call us at 888-900-1020.