Financing in Indianapolis>Question Details

VBW22, Renter in Plainfield, IN

I have one derogatory bill I owe on my credit report, I was told I had to resolve it to prequalify for FHA loan and then be clear for 1yr-true/false?

Asked by VBW22, Plainfield, IN Mon Feb 27, 2012

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Definitely not true. Now if that one derog is a Child Support or IRS Judgment, that's a different story. But generally speaking it is at the discretion of the specific underwriter (authorized person to approve your loan for the lender). FHA/HUD does not require that collections or charge offs to be paid unless they could be considered title effecting. I have closed 100s of loans with outstanding collections, it just needs to make sense. Talk to a Loan Officer that has lots of experience with government loans and specially with credit.

Best of Luck!
1 vote Thank Flag Link Mon Feb 27, 2012
Follow Mr Mennen's lead on this one - check with your lender and see what needs to be done, that is going to be your best course of action. Also, ask about other programs out there that you might be able to use. Indiana Housing is something to look into and Regions has some solid programs as well. like their Affordable 100. Call around, see what programs each lender offers (they do not all have the same programs), see which one best applies to you, and then see what you need to do to qualify for it.

Good luck
1 vote Thank Flag Link Mon Feb 27, 2012
False. I am a mortgage broker and several of the lenders I represent should able to do your loan now. A word of caution - paying off the collection right now could lower your credit score. Please call it txt me of you would like for me to help you. David Mennen - Tippecanoe Mortgage 765-714-8894.
1 vote Thank Flag Link Mon Feb 27, 2012
It would have to be resolved but I would do it under the direction of your lender and get exactly what they need to be able to do a loan. I have seen loans done as soon as items were paid. It depends on the lender and what kind of bill. Let me know if I can be of service.
1 vote Thank Flag Link Mon Feb 27, 2012
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