How to Qualify for the FHA if Your Mortgage Is 30 Days Late
- 1). Pull a copy of your credit report. If your mortgage is currently late and you have extremely bad credit, you'll likely be unable to refinance through the FHA. You can get a free copy of your credit report at www.AnnualCreditReport.com. You will need to pay for your FICO score, though. A FICO is a three-digit number between 300 and 850. Excellent scores are above 720; poor scores are below 600.
- 2). Check your eligibility for a FHA Secure loan. These are the refinance loans offered through the FHA for struggling borrowers--particularly those whose loans are late. You will not be able to qualify for a HOPE for Homeowners loan (passed in 2008 following the credit crisis). Mortgages must be current to qualify for these.
- 3). Meet one of the eligibility standards. These include: an adjustable rate mortgage (currently adjusting), 3 percent equity in the home, a history of on-time payments, a two-year track record of consistent income and a loan amount within FHA standards. You need only meet one of these standards to qualify.
- 4). Find a local FHA lender. See Resources for a list of FHA-approved lenders in your area. You can only qualify for an FHA Secure refinance with an FHA-approved lender. (The federal government is not a direct lender; instead, it reviews and approves private lenders.)
- 5). Give your FHA-approved lender your income documents, copies of all unsecured bills (credit cards) and copies of your existing mortgage paperwork. This will speed the eligibility process. In general, your mortgage payment must be at least 31 percent of your total gross monthly income.
- 6). Accept the FHA Secure refinance only if it is financially beneficial. You do not want to end up in the same situation a few months down the road. Refinancing can be costly and you must be sure the new loan will put you back on the path to financial health.
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