FHA loans qualifications is a mechanism to look at your potential to repay an FHA loan debt debt as indicated by your credit report. Your willingness to repay a debt will be judged through the reports that are recorded regarding your credit. This will determine your performance and your capability in making your payments during your previous debts in the past.
Now, if you are not sure about your credit standing or your current credit score, you may get them by simply looking for a free credit report that mare easily availed online. You have to learn that FHA is an important way of looking at your credit, and your loan approval relies on the kind of FHA you have. Please read and try to understand the following:
Everybody needs to have a perfect credit rating. In times you borrow money you are basically making a commitment with the creditor or the lender. This is a commitment that you are going to pay them back when you have reached the time or period that have been agreed upon between you and him. Now if you make a late payment, then this means that you have broke the commitment or agreement between the two of you. This in turn will make the creditor indicate your late payment on your credit report.
The creditor does not know the reason why your payment was late and that is not their obligation to know. What they are obliged to do is to know that you have broken the commitment that was agreed upon. You also have to take note of this: the creditor is not also responsible in helping you to manage and supervise your dents and bills. The lenders and creditors simply offer their services and the borrower simply accepts the terms and conditions that were agreed upon.
That is why credit record is a significant deciding factor for your loan qualification.So you have to know that even when you have a perfect credit record this time, the FHA will have to deal with your past credit issues.
Basically, FHA usually looks at the last two years of your credit history. If in ca se that there are credit issues that were discovered, there are some ways on how one can overcome them by means of sufficient explanations and supporting documents of why there were such occurrences. The following are some of the reasons that are acceptable by FHA: loss of job, job transfer and serious illness. Just make sure that the reason is good enough to make sense, your reasons ought to be accepted.
If you have no credit all, you may pass the FHA loans qualifications. Getting an FHA loan will give you the advantage of not being under a credit scoring item called FICO or Fair Isaac Company.