FHA Loan applicants must have a minimum FICO® score of 580 to qualify for the low down payment advantage which is currently at 3.5%. If your credit score is below 580, the down payment requirement is 10%. You can see why it's important that your credit history is in good standing. However, for home buyers in NC with collections totaling over $2,000, FHA now requires lenders to include monthly payments in calculating eligibility, for the first time. While some collections report a minimum payment on credit reports, most do not, and lenders will assume a payment of 5% of the outstanding balance. For disputes over derogatory accounts, FHA loan rules list a set dollar amount standard for the lender: "If the Borrower has $1,000 or more collectively in Disputed Derogatory Credit Accounts, the Mortgagee must include a monthly payment in the Borrowers debt calculation." Note: If the lender marks the collection account Paid By Close in the online loan application, DU will issue a message in the DU Underwriting Findings report stating that the collection must be paid. For two- to four-unit owner-occupied and second home properties, collections and non-mortgage charge-offs totaling more than $5,000 must be paid A credit score of 500 or higher for basic eligibility, and a score of 580 or higher to qualify for the 3.5% down-payment option. A debt-to-income ratio no higher than 43% in most cases, or up to 50% if "compensating factors" are present. The financial capacity to repay the loan, documented with pay stubs, tax returns, etc. FHA loan rules governing cash to close are found in the FHA Loan Handbook, HUD 4000.1. An example of the requirements in this area for manual underwriting includes the following: "The Mortgagee must document all funds that are used for the purpose of qualifying for or closing a Mortgage, including those to satisfy debt or pay costs outside of "Collection accounts of a non-borrowing spouse in a community property state must be included in the $2,000 cumulative balance and analyzed as part of the Borrower's ability to pay all collection accounts, unless specifically excluded by state law." Your participating FHA lender will require some documentation in these cases. FHA loan rules require the lender to exercise due diligence and determine whether the charge off was the borrower's fault, whether it was the result of a one-time circumstance unlikely to be repeated, or if it was caused by a general disregard for financial obligations. In cases where such accounts exist, the lender is required to document Advisory Bulletins.

A number of issues relating to Federal Home Loan Bank (FHLBank or Bank) membership eligibility have arisen recently both through the examination process and as a result of inquiries to the Federal Housing Finance Agency (FHFA). FHFA has issued this supervisory letter to ensure that all FHLBanks are aware of these issues New FHA Collection Account Guidelines FHA changed it's collection account guidelines. Going forward all collection accounts within the last two years must be paid off. All collection accounts totaling over $1,000.00 must be paid off. Collection accounts that total less than $1,000.00 and are over two years old may not have to be paid off. The FHA recognizes two types of circumstances-tax debt and non-tax debt. For tax debt, the FHA states: "Tax liens may remain unpaid if the Borrower has entered into a valid repaym