If you believe that the title of this article, FHA Loan Denial With Good Credit, could not be true, then you’d be mistaken because unfortunately this is entirely possible and later on in this post, we will go over just how this can happen and what you can do to avoid getting into this situation. If we backtrack just a little bit, and if you know anything about FHA Loans, you will know that they are the most popular loan program used in the United States. The number one reason that this is so is because of the relaxed guidelines that are used to lend under this program. The FHA Loan as some of the most lenient guidelines you can find and for the lowest FICO scores. Under FHA Loans you can have a FICO 620+ and receive a debt to income ratio of 56.9% with only a required 3.5% down payment. If your FICO score is from 580-619 you can still purchase a home with 3.5%, but will be held to a 43% debt to income ratio. Finally, if you have a 500-579 FICO score you can get a home with 10% down and a debt to income ratio of 43% as well. Under FHA Loans you can also get a maximum seller’s concession of 6% which can be used for your closing costs and assistance with buying points in order to lower your mortgage rate.
Alright, now we can get back to FHA Loan Denial With Good Credit and the possibilities of this happening. As with all loans, the basics for getting approved is have the minimum FICO score and also the qualified income to support the purchase. Now, I will preface this by saying that loan officers who give out preapprovals without looking into a borrower’s file 100% is a great reason for getting denials, but here at Loan Consultants we can guarantee that when a preapproval is issued, we will close on that loan. We will make sure up-front that we can do the loan. A lot of lenders will have Lender Overlays which will cause FHA Loan Denial With Good Credit. If in the past 12 months you have 30-day late payments, you can find yourself getting a denial, however, there is nothing on the FHA guidelines that say that you cannot have a 30-day late in the past 12 months.
There are some situations where you can indeed get an FHA Loan Denial With Good Credit and that could come with have a recent 30-day late payment on an existing mortgage. If you cannot keep your current house payment current, how would you be expected to keep an additional loan current as well. You can also find an FHA Loan Denial With Good Credit if you have open credit disputes on your credit report. If you are looking to get an FHA Loan, you are going to have those credit disputes retracted in order to get your loan processed, however, be prepared for your FICO credit score to drop upon removing these disputes.
If you want to work with a lender that is going to get the job done for you every time, then you need to reach out to me via call or text at 888-900-1020, email me at firstname.lastname@example.org, or apply through www.loanconsultants.org. I am available for all of my borrowers 24-7-365, days, nights, weekends, and holidays. You get in contact with me and you will be taken care of!