I am wondering if anyone has any experience with fha loans. My debt ratios would be about 20/33%. I have 1.5 years on the job and have 2 years perfect pay history on 5+ accounts. However I have numerous collections and charge-offs that are 4+ years old totaling about $4500. Do I have a shot? Do I need two full years employment history? Would you apply and let the lender help clean up the credit report and tell you what needs to be paid or would you pay these ahead of time. I believe my middle score is 568. (Ouch!) Thanks for the input.
For an FHA loan, EVERYTHING on your CR has to be accounted for (meaning paid/showing paid). I don't know the status of your chargeoffs (paid/unpaid), but if you have a couple of years (24 months) of "clean" payment history, you should be okay. As far as employment goes, I was on my current job for 5 months when I got my FHA loan, BUT I had been in my industry (no "unemployed" periods) for over 4 years. Hope this helps a little...
I have a 6 month gap in employment when I was finishing school. My charge-offs are not paid but will be prior to closing. I plan on negotiating some settlements. I have paid off about $1500 of the $4500 I owed. Thanks for your input!
