FHA Bans Borrowers With Credit Disputes, Raises Insurance Premiums

April Showers: FHA Bans Borrowers With Credit Disputes, Raises Insurance Premiums

The joke was on you April 1, if you applied for a Federal Housing Administration (FHA) home loan and had an outstanding credit dispute of $1,000 or more pop up.

Beginning April 1, the FHA began tossing home loan purchase applications in the circular file if the applicant had an ongoing credit dispute or collections action of $1,000 or more on his or her credit report.

To pass muster you must either pay off the outstanding balance of the disputed account or document a payment arrangement the lender must submit to the FHA before you close the deal.

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