Problem Credit

[BO1976]

I am interested in purchasing a new manufactured home. The amount would probably be approx $53,000 for the home. I own the land (there is no existing house on the land). The problem is financing. We had a 12-month span of financial difficulty resulting from a health issue. That issue has been resolved and we have been very consistent over the last 4 or 5 months. Anyway, my credit score is quite low, approx 550-580. Due to a few late payments during that time I am assuming I would not qualify for FHA. We have been denied twice and I wonder if this is possible at this time. Anyone have any ideas?

[rmurray]

A good originator familiar with FHA standards and rule should be able to help...FHA would not approve you if you have large collections even if they are medical..All accounts should be up to date NOW...You have not mentioned the value of the land...If there is enough equity there are many lenders who sill finance a home for you..All will be looking at income..employment....No matter what..if you keep all your payments up for 12 months and are ready to pay large collections..FHA will be the source for you...Consult with a knowledgeable dealer for advice...A good one will not mind waiting a few months to finish your deal....

[BO1976]

Thank you for the information. The collection amounts are not extremely high and I could probably pay them off quite soon. The value of the land is approx 4-6K as it is a smaller city lot. It would be wonderful if we could be financed in the near future. But it sounds like FHA would not be an option until 12 months from this time.

[rmurray]

From the info in your first message, you are only 7 months from a new home..All the FHA needs is 12 months with NO 30 day late notices..In the mean time work on the collections and make arrangements to pay them..Good Luck...

[kirkdavison]

FHA is by far the most forgiving with credit issues. If you can show 12 months without bad credit your score will not matter. Collections may or may not have to be paid off but if not paid will have to be adressed.