If there have been credit problems in the past, you need to provide a written explanation for each one of the deragatory items and if possible, proof to support the explanation. For example, if you were late due to a prolonged illness, provide a letter from the doctor or a letter from your employer confirming you were out of work due to illness.

Generally speaking, you can not have a significant number of late payments within the past 12 months. Although FHA is not a credit score driven program, lenders have identified 580 as the lowest score they will consider. There are always exceptions to every rule. If there are compensating factors, a lender may consider a lower score.

Bankruptcies must be 2 years old. A lender will consider a one year old bankruptcy if there is an acceptable explanation. Again, the explanation must be in writing and there must be proof.

If you have had a foreclosure, you must wait 3 years.

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