Debt Relief

New FHA Loan Standards And Old Debt

The Federal Housing Administration (FHA) can be the best option for many aspiring home buyers. The agency has long been known for approving low interest loans for less desirable credit scores. Recently; however, the agency has changed a few of its regulations and has targeted old debt.

The agency is letting potential borrowers know that it will no longer loan money to people with outstanding collections that total over $1,000. For many people in need of TN debt settlement, this is nothing.  Same goes for people exploring debt consolidation in TN.  The type of debt is not important. It can be medical bills, old credit card debt, anything that has gone to collection. Luckily, there are debts that can be waived.

Debt that has been paid off, or paid on for at least seven months can be waived. Debts that are being disputed for identity theft or unauthorized use of an account can be waived, as well. Additionally, debts that total less than $1,000 and are more than two years old can be waived. If your financial hardship occurred as the result of a death, job loss, or divorce you may be able to obtain a waiver, also.

The new FHA regulations are a nod to the overall tightening of guidelines within the mortgage industry. Your best option is to obtain a credit report several months before you are ready to apply for a mortgage. Correct any errors on the report and address any collection actions. Even if you are not looking for a loan, you should get your credit report once a year to make sure everything is accurate.