Loans from FHA-approved lenders (Federal Housing Authority) provide more flexibility than conventional loans. Here are some of the things generally allowed in re-establishing credit via FHA loans:
- If you went through foreclosure or deed-in-lieu, if 3 years have passed, you may be eligible
- If you had outstanding tax liens, if you’ve arranged a repayment plan with Federal (IRS) or state tax authorities, you may be eligible
- If you have judgements that have been paid, you may be eligible
- If you went through bankruptcy at least 2 years ago, you may be eligible.
For borrowers with unusual credit records — for example, those who prefer paying in cash and carrying no debt — FHA may be an option. Likewise, new or first-time buyers with little established credit should investigate FHA programs for assistance.
Talk to an FHA-approved lender to learn more.