This will be effective with all FHA assigned Case Numbers dated @ 4/1 or greater…

ALL COLLECTIONS will be required to be paid off if they exceed $1,000.00 in total or they MUST go into a payment arrangement.  It will then require a payment history with at least 3 months of verified payments to prove they are working at paying that debt.  This will also include that monthly repayment cost into the debt-to-income qualification ratio.  So prepare for a worst-case scenario.  Don’t forget that waking up old debt will affect the FICO score, and while waiting for the proof of three months paid to the debt, I am sure it will reduce that score.  PAY YOUR BILLS.

OTHER CHANGES: There is also going to be a requirement for Profit and Loss Statements (P&L’s) for all self-employed borrowers for 2011 and Year to Date income.

Why not go Non-FHA with a 5% down option NO PMI?  Ask How HERE!

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