Past Credit History and Loan Requirements

(My Original Blog Post: http://www.minnesotainvestors.com/blog/past-credit-history-loan-requirement/)
PAST

A: Credit History
CREDIT REPORT:
Items recommended to remove off of your credit:
Collections
Foreclosures
Inquiries
Charge-Offs
Late Payments
Public Records
Tax Liens
Bankruptcies
Judgments
Repossessions


CREDIT HISTORY:
REQUIREMENTS FOR A HOME LOAN:
-Chapter 13 BANKRUPTCY:
There must be 12 consecutive months of on time payments on all accounts
(including utilities, cell phones,etc) from the filing of the chapter 13
bankruptcy.

-Chapter 7 BANKRUPTCY:
There must be 24 months of perfect credit from the
disposition of a Chapter 7 bankruptcy.

-FORECLOSURE: (FOREX PROGRAM)
Extenuating Circumstances for financing 1 year out of foreclosure
The FHA Underwriters have the ability to manually
underwrite the file and get an "exception" if there are extenuating circumstances (ie Medical, Death,
multiple job loss). Buyers would need to write out a very detailed explanation of exactly what
happened, and will need to submit supporting docs (legal, medical, etc). Each File will be
reviewed by UnderWriting to determine if the circumstances warrant "Extenuating". If so, they will grant Pre-Approval.
*3 Years since last foreclosure if you don't qualify for above
*2 Years since short sale with Fannie Mae

CREDIT NEGATIVE PUBLIC ITEMS:

Tax Liens- Must be on a repayment plan with a written verification letter from State, or the
Federal Government
Back Child Support -Must be current, or being repaid through wage-garnishment
Judgments -Must be paid in full, prior to final approval, sourced or gift on funds
Collections-Will review each one individually, a determination is based on individual circumstances
Bad Checks-Must be paid in full prior to Pre-Approval for those on the credit report

CONTACT ME:

Email subscribers- Go to any of these
sites, to get info by email: RonOrr.com,

RenterLeads.com ,
RentToOwnBuyers.com ,
Contract4Deed.com ,
HomeLoansMN.com ,

MinnesotaInvestors.com, SellMnHouse.com,
OverFinanced.com,
BankOwnedForeclosure.com

Scenario's can be emailed to: ron@minnesotainvestors.com

Phone:
763-634-1766-These calls will be answered by a loan officer and a buyer's
agent

Please answer
these questions on your first Voicemail/Email

1. Credit score of everyone on the loan
2. Last Bankruptcy, Foreclosure, or Short Sale for everyone on the loan
3. How long consistent work for everyone on the loan
4. Monthly payment you can afford
5. Total money available you have
6. Your desired move-in date