Prefer to talk in person? Find a mortgage specialist on Zillow
Profile picture for user839271

FHA Qualification question

I bought my home in 2008 with a FHA loan.  In 2010 I entered into a modification program which allowed for lower monthly payments for a period of 4 months, resulting in an interest rate reduction.  I have 5 months of late payments on my credit history for my mortgage during the time I was making lower payments for the modification.  I have not had a late payment on mortgage since then.  Fast forward to 2012, I relocated for my job and am now renting my home.  I want to purchase another home in the area that I am living in now. 

My middle credit score is a 608.  I have a tax lien on my credit that was improper and am in the process of getting that removed.  The lien was withdrawn and vacated.    Other than the tax lien, I do not have any other late payments on my credit.

I have three questions: Can I qualify for another FHA loan?   How will the late mortgage payments affect my ability to get financing?  How will removal of the tax lien affect my credit?
  • April 06 2012 - Atlanta
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (3)

The best way to find out how this will impact your ability to get a loan would be to contact a mortgage broker who specializes in FHA loans and does them every day. They will be able to look at your specific information and determine what you may qualify for.

  • April 06 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Can I qualify for another FHA loan?
  From what you laid out here, as long as your income enough & liquid assets (cash &/or stocks, bonds, IRA's, 401k) & you can prove the tax lien is no longer in effect, you should be able to qualify.
How will the late mortgage payments affect my ability to get financing?
  If they are over two years old, you should be fine.
How will removal of the tax lien affect my credit? 
  Removing the incorrect tax lien from your credit report should improve your scores. Be sure it it removed from your credit report. If it shows as "satisfied", your scores may actually go down before they start to improve.

Hope that helps.  Please feel free to contact me directly if I can help you with any other questions.

All the best,
Ros

Roswell Moore, CMPS
Certified Mortgage Planner


  • April 06 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I would speak with a qualified loan officer to help and see what you may need to do in case you cannot be pre-qualified for a loan. I can recommend a great one if you need. She is responsive and always looks to educate within the loan process. If you would like I would be happy to give you her contact information.

Tyler Willis, REALTOR®
Keller Williams Realty Intown Atlanta
  • April 07 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.