Can I get a FHA loan if I am in Consumer Credit Counseling​?

Participation in a consumer credit counseling payment program does not disqualify a borrower from obtaining an FHA-insured mortgage provided the lender documents that one year of the pay-out period has elapsed under the plan and the borrower's payment performance has been satisfactory (i.e., all required payments made on time).

In addition, the borrower must receive written permission from the counseling  agency to enter into the mortgage transaction. As indicated in Mortgagee Letter 05-15, when processing an application through FHA TOTAL Scorecard, the borrower's decision to participate in CCCS does not trigger a requirement for additional documentation since the credit bureau scores already reflect any degradation in credit history. The borrower's credit  history, not voluntary participation in CCCS, is the important variable in scoring the mortgage and, thus, no explanation or other documentation is needed.
Handbook 4155.1: 4.C.2.i

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