Beginning October 30thwe will be able to integrate a FTHB’s rental payment history for the last 12 months into FHA’s underwriting software in hopes of approving more FTHBs for a FHA loan. A FTHB is someone who hasn’t owned a home in at least 3 years or someone who is divorced or legally separated and has had no ownership interest in a principal residence except for with their ex-spouse during the last 3 years.
Here are the requirements—
· At least 1 borrower is a FTHB
· Each borrower needs a 620 Fico
· A documented history of a positive rental payment history for the last 12 months with rental payments of $300 or more.
Here is how we document their positive rental payment history. We need an executed copy of the lease and one of the following–
· Written Verification of Rent completed by a landlord who is not related to the borrowers.
· 12 months cancelled checks or
· 12 months of bank statements or payment service statements documenting rents paid or
Landlord reference from a rental management company.