FHA and Collections

Hi, welcome!

First of all, love your name..congrats on the terrific season..Just like 1996 all over again!

I would think that it would depend on a few things..What types of collections? If they are significant, like civil suits, you might have difficulty getting the loan or may have a high interest rate. Also, I would think it would depend on the individual lenders' criteria.

Thanks FinsFan!! Love your name too!! I miss the old Dophins... when Shula was there. Unfortunatley, they havent been the same since.

As for the Devils... pretty incredible...they are fun to watch!

Alrighty, these collections are for old CO CC. One of them has been reaged back in 05...which is totally BS.. Another story for another day.

My loan broker indicated that the local underwriter stated that we will need to settle or completly pay off the collections. She is kicking this up to a HUD underwriter for clarification and pleading our case...

I read somewhere that collections arent that significant. Only income and job stability are, which neither are an inssue.

Im not at all familiar with the FHA loan process..So, I am asking questions as they arise...

This question would be best answered in our mortgage forum. Go to the top of our web page and click on mortgage forum.

Hmmm... I tried posting this question in that forum...However, it said I couldnt use numbers in my nic..

Will try again...

I'm part of the mortgage forum! :D

Medical bills are more overlooked than anything else, your debt to income ratio plays an enormous part, so it's always best to pay off what you can.

I miss Shula too.

well, I went back to the mortgage forum..and took out the numerals... it took it, and it placed the numerals back in my nic at the post!! as sundevilfan scratching his head wonder what happened!!!

anyway fins...

dti is around 34...

Is a co-signer an option? Or, can you pay off some of the smaller collections? Every little bit can help. I hope that the underwriter can help you..

no, co-signer not an option...

Well, I hope the underwriter will help out...

I hope so too...Keep shopping around.

My first home loan was an FHA loan....they do not want "perfect" credit, but they do not want any collection account, judgements, etc. We paid off a few things before we could qualify under FHA guidelines.

what if they dont answer?? Then what do I do.. Can I just prove that I sent them an offer?

Hi there....Mine was in 2000 and not sure if the gudelines have changed, but I know they wanted them paid. Now, (you didnt hear this from me), a friend of mine disputed them and they accepted the disputes as "temporary resolution" in order to underwrite the loan. I dont recommend it as if the disputes are proven valid before the loan closes, you are cooked!

I saw your question...what if who doesnt answer, the collection agency you are trying to pay?

Well, to update everyone....

Last night we got confirmation. If I pay off 3 of the collections and dispute one of the collections than we will approved for the FHA loan.. We will close on Friday, THANK GOD!!! Being dealing with this loan issue for over 3 weeks solid... I don't think I could take it much longer mentally. It was very taxing to say the least.

Anyway, the collection I am disputing, there are some serious questions regarding SOL (there have been some reaging) and the balance (which they tripled).

I appreciate all those who chimmed in by adding their viewpoint and suggestions to this thread.