Have you recently had a loan officer say a loan couldn't work because FHA requires collections to be paid off ???? (THIS IS AN EXAMPLE)



The real answer is FHA does NOT require collections to be paid, does NOT require a borrower to have reserves in the bank, does NOT require a minimum credit score, ETC.



FHA also doesn't "buy" mortgages... FHA only insures them. So, the confusion comes in with the lenders putting "overlays" on the FHA guidelines depending on which investor… Continue