Can you get a FHA loan if you have a unpaid repossession that is 5 years old? It is the only negative item on the credit report.
It is my understanding that if your credit has been clean for two years and you have reestablished some new credit, then FHA eill approve. Good luck! Roni
The mortgage broker my wife and I talked to said that the loan company will mainly look at your payment history over the past 2 years. So, fingers crossed, something that old shouldn't hurt you if you've had a history of being current since then. He also said that you had to have a score of 600 or over (he highlighted the beacon score when he was explaining this, but it may be an average of all 3 that they consider - I don't know) to qualify for an FHA loan. Anyway, I hope this helps!! -Dan
cj, are you applying for the fha? please keep us posted as to ho wit goes. i will be applying later this year. goog luck to you
I just posted and it diappeared. I was saying that if you have an UNpaid bill and the amount is significant they will make you pay it off first. They do only consider the last 2 years for credit history though. The reason they make you repay is because the CA or OC could put a lien on your property after you close. We were ok with a medical collection for $65, and it's been disputed off with validation letters now anyway. Kim
cj Normally you have to pay off any open collections, repossesions and judgements to qualifiy for either FHA or Fannie Mae/Conventional mortgages. FHA generally does not look at paid negatives only unpaid ones. Conventional mortgages look at both paid and unpaid in the qualification process. What is the amount owed BTW? fla-tan
Yes you can. Hubby got an FHA loan feb 2001 with unpaid deficiency balance. We were going to pay the balance off and then put down 5% for the loan. The mortgage broker said if we put 10% down we could get the fha mortgage. We didn't have the money to do both. They said fine! Great, that's what we did. I'm very happy we got the house with a good rate but wish we would have paid the repo. The bank who had the car loan pulled hubby's credit, saw the mortgage reporting and sued. :-(
Update on FHA martgage with unpaid repo. Here is my scenario: I want to buy a house that has not been constructed yet. I had a meeting with the mortgage broker. He never said anything about the repo. My scores are TU 650, Exp 652 and EQ 619. I am hoping to do what is call a Farmers FHA loan. I will only have to put down $350.00. The mortgage broker said he thought he would have no problem getting me a loan. Here's the story with the repo. Car was a joint account. Now listed on CR as Individual. EQ reports a $4,455 balance. Account charged off 3/97. EXP reports balance of $10,606. Repossession/Account charge off 3/97. TU does not have this listing. When I spoke to the OC on the car they said ex-spouse is paying and they can report whatever the hell they want until it is paid in full. I just want this darn thing off my report! Mortgage broker does want a written explanation. I have appointment tomorrow to pick house colors. I have already picked the lot. Will keep you all informed.
how can fha give you a loan?? i know they can give loans on pre-existing homes but didnt think they could on new construction???
Check out this website. http://www.amo-mortgage.com/library/fhaprograms/perm.html BTW the loan amount is $110,000.
