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What can I qualify for?

My Grandfather and I recently modified an existing mortgage in October 2010, for a property in Miami (currently living in Canada since 2005). My dad had been covering the payments since I left but lost his job and could no longer make the payments. We were 120 days past due as of September 2010 but current since, it was a joint mortgage with my grandfather.  And the only reason we went past due is because our Lender said, we couldn't modify our loan because we hadn't missed any payments, so we began to miss payments until we qualified.

I was told there is a hard rule that if you've been delinquent more than once in the last 12 months (for FHA) you would be denied.

We are selling that property (to my father, who now has a great job and credit) and I am being relocated to Michigan from Canada by my company with a promotion, and hope to buy a new property.

If all other things are satisfactory (i.e. downpayment 65k on a 250k house (financing 185k, 26% down), credit score 718, 73k / year salary, mortgage-to-income ratio 24.7%, debt-to-income ratio 34.2%, 5years employed with company)

If my last delinquent month (on the Miami property with my grandfather) was September 2010 at 120 past due, when would I no loger be denied? Is the delinquency rule in the last 12 months are hard line in the sand rule? Would I be denied for a pre-approval based on that as well?
  • April 06 2011 - Farmington Hills
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Answers (2)

The 12 month rule is pretty much hard and cold. If your last mortgage late was in September, you should wait to have a credit report pulled until October 1st, 2011. It is my experience that FHA does not care if you were forced to miss payments to get a loan modification.
  • April 06 2011
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I was hoping to build, and the house wouldn't be done until November 2011.  Since I have the $65k in cash and immediately available to make the 4, 5% installments required by the builder, is there anyway to get some type of preapproval or conditional preapproval?  That would stipulate we can't close until on or after Nov. 1st 2011, so that the past due from Sept 2010 would have dropped off by then?
  • April 06 2011
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