Am I eligible for an FHA mortgage if I’m enrolled in consumer credit counseling?

SELF EMPLOYED MORTGAGE LENDERS QUESTIONS AND ANSWERSCategory: FHA QuestionsAm I eligible for an FHA mortgage if I’m enrolled in consumer credit counseling?
Thomas Martin Staff asked 2 years ago
Am I eligible for an FHA mortgage if I’m enroled in consumer credit counseling?

Participating in a consumer credit counseling program does not disqualify an FHA mortgage applicant from obtaining an FHA-insured mortgage loan. 

For manually underwritten loans FHA mortgage lenders
must  document that: 
•     one year or 12 months of the pay-out period has elapsed under the consumer credit repayment plan; 
•     the FHA mortgage applicant’s payment performance has been satisfactory and all required payments have been made on time with NO 30 day late payments; and 
•     the FHA mortgage applicant has received written permission from the counseling agency to enter into the FHA mortgage transaction.  

When processing an application through TOTAL Scorecard, participation in a consumer credit counseling program does not require a downgrade to manual underwriting and no explanation or other documentation is needed. 

For additional information see Handbook 4000.1  https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

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