March 29th, 2010:

First-Time Home Buyer with Bank of America FHA loan.

Im a first-time home buyer. I fixed my credit and Bank of America gave me a pre-approval for 84000.00 at a 5.250% and now there saying that they cant gave me the loan. I saw a home and i was going to put a offer on a townhouse thats 75000. Im so confused,the reason why they are unable to approve my loanare :insufficient credit references and obligations currently or formerly past due. Remind you they told me my credit was at 648 being the middle SCORE. And they advised me,as long as you have higher then 600 you can get FHA.

I dont have anything on my credit…..but,Equifax has a settlement that i paid and have the proof……it was paid. tranunion and experian took it off but equifax is so hard to get on the phone.

Should i try a different bank……the bank said,i shouldnt have any problem with the settlement…….the settlement was a judgement from Bank of America for 5000 and the settlement was for 2500…….WHAT SHOULD I DO???

Answer: If you don’t have any active positive trade lines at least 4 and you have allot of settled or derog accounts. It’s likely you wont get approved. The credit score might be high enough to get you approved by their scoring matrix, but that’s about it. If you cant get equifax attention by the phone send them a certified letter and use your right under the FCRA (Fair Credit Reporting Act). I have provided a link that will answer all your question in Reference to all your questions in repairing your credit and the process and requirements for the approval of an FHA. Hope this helps!

http://www.creditinfocenter.com/mortgage/guidelines.shtml#credit

http://www.hud.gov/offices/hsg/fhahistory.cfm

FYI Do not continue to pull your credit with other lenders, Realtors, or brokers. This will only make matters worst since its more inquiries in your credit. Unless you recently pulled your credit you have 7 days from that day and your score wont get affected. I would not risk it though.

FHA mortgage insurance provides lenders with protection against losses as the result of homeowners defaulting on their mortgage loans. The lenders bear less risk because FHA will pay a claim to the lender in the event of a homeowner’s default. Loans must meet certain requirements established by FHA to qualify for insurance. (Federal Housing Administration)

FHA loan for Bank of America interest rate

The interest rate I got approved for is 5.25% thru Bank of America. Is this a good ARP? It’s a 30 year fixed. Whats the lowest possible ARP on a FHA loan?

Answer: That’s a good rate. Also would depend on your credit rating and weather or not you are paying points on the loan to get that rate. Or are you paying just the 5.25. Watch out even though they state sometimes no points they sneak in the extra cost and call it loan origination. Check your estimated settlement statement.

I started the process in April 08 and it ended in Aug 08. I got an FHASecure Loan with Bank of America (B of A) for the appraisal value amount of our home which is $245K. The current loan balance with CW is approx. $377K. We are asking CW to accept the FHASecure loan of $245K and to modify the current balance. My understanding of the law is that with an FHASecure Loan there cannot be a second mortgage from Countrywide but loan forgiveness of the balance. I mailed my B of A FHA Secure Loan pkg to CW on Aug 15, 2008.

Bank of America FHA loan Relate post:

Bank of America Loan Modification
Successful Bank of America Permanent Loan Modifications
Bank of America Mortgage Refinancing and Modification Options
Sucessfully Short Sale with Bank of America

If you have a mortgage with the FHA with Bad credit, California, you can worry about refinancing. Most people who care about refinancing fears that binds to a very much higher. Cost recovery is possible through FHA Secure, a new option for the mortgage refinancing FHA began in August 2007 looking to homeowners who are now with a loan or mortgage foreclosure assistance.You can refinance your FHA mortgage with bad credit California. It just takes a little perseverance and effort, but can do it.

The FHA Secure loan is ideal for someone who arrives late and / or behind on their mortgage payments. Or if your interest rate increases and then run the possibility of foreclosure on your home or mortgage in California examined. The FHA Secure loan can also be an alternative for those who have little or no equity in their homes. The loan allows you to refinance at a good price, even if the lender did not tell his family. In addition, certain guidelines must meet to qualify for these loans.

If you are not surprised, do not offer FHA direct loans to people who need them and not to regulate the process of obtaining credit by establishing appropriate rules and regulations. Although each type of loan is quite difficult to achieve if you have bad credit, can not have their expectations too high. Keep working hard to improve their creditworthiness and to find some financial assistance if needed. FHA loans for people with bad credit is not impossible to get, but definitely not easy that you will not either.

They must meet certain criteria to qualify for this loan FHA Secure to help California home. The rate mortgages will be reset in June 2005 until December 2009. Equity in your home must be at least three percent or three percent cash. Need a loan to the story ended on time payments before the mortgage is,and  teaser rates reset. A history of employment during the past two years, is also required. Several income only pay the FHA Secure mortgage payments also required. New amount of your loan may not exceed the limits of the current FHA loan

Refinance FHA Mortgage with Bad Credit in California Relate post:

The Process of Completing an FHA Application
Owing Back Taxes And Applying For A FHA Loan
FHA Housing Loan – 203k FHA Rehab Loan
Minimum Credit Score For FHA Loan