Can a borrower with an FHA foreclosure complete a new FHA loan application before they are eligible?

Yes, however the mortgagee is responsible for determining the creditworthiness of a borrower, which includes analyzing a borrower’s overall pattern of credit behavior.

Mortgagees must obtain the most recent documents required to perform the mortgage credit analysis. “Most recent” refers to the most recent document available at the time the loan application is made.

HUD Policy Determination

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-03684