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!