Alaska Housing Industry - Information for Buyers and Sellers

According to CNNMoney, starting April 1, borrowers with ongoing disputes with creditors over debts of $1,000 or more may no longer qualify for FHA insured loans.  The new rule also applies even if the borrower has a perfect credit score.

Borrowers with ongoing debt disputes of over $1,000, would have to pay the remaining balance or enter into a payment plan with at least 3 payments on it.  Payments made must be documented and submitted to FHA, before they can secure FHA mortgages.

FHA will not include the disputed credit accounts from more than 2 years ago or any credits related to reported identity theft.

In FHA study, they found out that many borrowers that are unable to pay their current mortgages had prior credit deficiencies including unpaid collections and other unresolved credit disputes.

Tiffany Thomas Smith, Deputy Press Secretary for the U.S. Department of Housing and Urban Development said, "It's a way of protecting consumers from getting into loans they ultimately can't afford.

For more information, you can check out http://money.cnn.com/2012/03/30/real_estate/FHA-loans/index.htm.  Or you can contact me for any real estate information.