Participating in a consumer credit counseling payment program does not disqualify somebody from obtaining an FHA mortgage. This is providing that the lender documents one year of the pay-out period has elapsed under the plan and that the buyers payment performance has been acceptable, meaning no late payments on accounts or rent.
It is imperative that the buyers loan officer help them receive written permission from the counseling agency to apply for an FHA loan. There are many caveats to FHA financing and with it come many questions. Feel free to contact us about this or any other mortgage related question. We are always glad to help.