The FHA is generally more flexible than conventional loan lenders when considering credit history in its home loan qualification guidelines. As we show you in this video, the FHA allows you to re-establish credit if:
- two years have passed since a bankruptcy has been discharged
- all judgments have been paid
- any outstanding tax liens have been satisfied or appropriate arrangements have been made to establish a repayment plan with the IRS or state Department of Revenue
- three years have passed since a foreclosure or a deed-in-lieu has been resolved
If you prefer to pay debts in cash or are too young to have established credit, there are other ways to prove your eligibility for a home mortgage loan. Talk to your mortgage lender for details.