December 9, 2014
A reader asks, “I would like to know how to get an FHA loan, I had a Bankruptcy discharged in Aug. 2010. This is my problem I got a credit card to improve my credit score. I was paying faithfully, then another card company that I already had Two that company. I was paying faithfully on those accounts also.”
“Well when the credit company took over that account I didn’t realize I now had 3 accounts with that bank. Another reason I didn’t know was, I moved and one statement was going to the old address. When the two statements came . So I would go onto the computer and pay my 2 accounts..My problem is on my credit report shows 30,60,30,60, 90 days late. What can I do to correct this… I already called the company, they said they would correct it, but they haven’t…”
Late payments are definitely a problem when trying to get an FHA loan approved, with or without a bankruptcy on the record. But post-bankruptcy, late payments can be an even bigger problem in the eyes of the lender.
When it comes to disputed accounts, the lender may be able to work with the borrower but will require additional documentation about the disputed account. The lender would have to review the disputed account and determine whether to approve or deny the loan based on the findings.
The results are not guaranteed in these situations–there are always two sides to every story and the lender may determine that the credit risk isn’t justified based on what he or she finds out in the process. But FHA loan rules do allow for an examination of disputed accounts to get to the bottom of the issue.
The borrower in such cases needs to bring any supporting documentation to the lender including any correspondence with the company, receipts of payment, etc. The more evidence the borrower can bring to the table, the better off he or she will be.
Do you have questions about FHA home loans? Ask us in the comments section. All comments are held for moderation.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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