Credit and FHA: A Tip
Posted August 4, 2008
A Credit Tip Concerning FHA Mortgages
Important Notice! You may be hurting your chances to get approved for an FHA mortgage loan!
Any accounts in dispute on your credit report will automatically make your mortgage application with FHA a manual underwrite! This means that even if the FHA automated approval system says yes, your mortgage application will be downgraded to a no and it will be up to an underwriter to determine if you should get the mortgage. Manually underwritten mortgage loans face tougher scrutiny and can take longer to close.
The reason I tell you this is that too many people still believe that disputing a bad account on your credit will somehow either make it go away or make it not count. This is not true. Without proper documentation, removing an account that is correctly reported will not happen. In other words, if you did not pay them, you can’t simply dispute it to make it go away.
Under this FHA guideline, disputing the account can take you from an automated Yes to a manual No. In many cases, the account in question may not have made a difference either way.
So before you begin going around just disputing items on your credit, be sure to talk to a qualified mortgage consultant. Knowing how the FHA system works can make the difference between an approval and a long drawn out denial.
This website provides information on FHA loans, including FHA Secure and FHA Rehab loans, for home owners and home buyers in the Charlotte area (including Concord, Gastonia, Matthews, Monroe, Huntersville and Ft. Mill as well as all of North and South Carolina.)
Apply online for your Charlotte area FHA mortgage loan
or call 704-651-8704 for your free mortgage consultation.
Related Articles
Posted in Buying a Home, Credit Tips, Mortgages, Refinance
